When it comes to evaluating the performance of a national economy, a key thing that we want to know about is the total level of output being produced. This is important because it determines what resources are available for the nation’s residents to consume. We would also be interested in knowing how total output is changing over time, as this tells us whether the total amount of resources in the economy is expanding as time goes by. In other words, is economic growth taking place?
Gross domestic product (GDP) is one indicator that measures the total output produced in the economy in a period of time. A related measure is gross national income (GNI), which also takes into account movements of income between countries.
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