The gross domestic product (GDP) is the market value of all finish goods and

services produced within a country in a year.

 Finished goods: Is a good that will be not sold again as part of some
other good.
 Intermediate goods:  Products that are used in the production
process to make finished goods,
 Capital goods: Goods that are used to make other goods but are still
considered finished goods.

GDP only counts production. (If an old house is sold this year, that doesn’t
add to the GDP, since the house wasn’t produced this year.)

GDP can increase if:

 Price increases (The economy is not producing any goods and
services)
 Production increases (more or better good and services)

Real GDP: measures a country's total economic output, adjusted for price
changes.
Nominal GDP: the total market value of all goods and services produced in a
country's economy over a given period
Real GDP per capita: Real GDP/ population (measures the average standard
of living in a country)