This Discussion focuses on how a nation's income is measured using the gross domestic product (GDP)/ The specific areas of discussion include the various components of the GDP, the difference between nominal and real GDP, GDP and business cycles, and the limitations of the GDP in measuring economic welfare.

Economists use Gross Domestic Product (GDP) to measure the economic activity and the national income.

1. What are the major components of the USA GDP? Explain the contribution of each component to the GDP with data.
2. What is the difference between real Gross Domestic Product (GDP) and nominal GDP? What is the relationship between the real GDP and the business cycle?