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2. Gross Domestic Product (GDP)

In this video, we learn about the Gross Domestic Product (GDP). It includes the definition of GDP and how to measure GDP using the expenditure and income approaches. Topic 2: GDP & National Income Accounting *Note It has also been argued that households’ purchases of new housing are included in the investment component of GDP rather than the consumption component. The reason is that investment is anything that creates value in the future whereas consumption is something that depreciates or decreases in value over time. Generally the return over housing increases over time if we ignore rare cases of depressions.