What are the two measures of national income and output?

There are two commonly used measures of national income and output in economics, these include gross domestic product ( GDP ) and gross national product (GNP). These measures are focused on counting the total amount of goods and services produced within some “boundary” where the boundary is defined by either geography or citizenship.

How do you measure the size of a country's economy?

The size of a nation’s economy is commonly expressed as its gross domestic product, or GDP, which measures the value of the output of all goods and services produced within the country in a year. GDP is measured by taking the quantities of all goods and services produced, multiplying them by their prices, and summing the total.

How is the economy measured in the United States?

Let's start by taking a look at the economy of the United States. The size of a nation’s overall economy is typically measured by its gross domestic product, or GDP, which is the value of all final goods and services produced within a country in a given year.