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The health of a country’s economy can be measured. There are several tools that can help determine how a country’s economy is doing. One of the most important tools used to measure an economy is Gross Domestic Product (GDP). GDP is the total value of all final goods and services produced (made) in a country. A final good is one that is completed and sold. GDP does not count uncompleted goods
and resources, which are redeemed so as intermediate goods. For instance, a car is considered as a final good made from many intermediate goods such as steel, plastic and glass.
The Commerce Department is the government agency that is responsible for calculating GDP for the U.S. They calculate GDP every 3 months, which is called a quarter. To figure out GDP, they add up spending in four key areas of the economy: consumer spending, investments, purchases made by the government, and exports minus imports. When all of these areas are added together, it tells us how
much our country produced, which we call GDP. For instance, for the entire year of 2014, the U.S. economy produced 18 trillions dollars of final goods and services. Hence, GDP for 2014 was 18 trillion dollars.

STEP 1:
1. What is the best tool to measure the health of an economy?
2. What does GDP measure?
3. What doesn’t GDP count?
4. What is an intermediate good?
5. Which agency calculates GDP in the U.S.?
6. How often is GDP calculated?
7. To figure out the total GDP, what four areas of the economy are calculated?
8. According to you, what was the GDP for 2018 in the U.S.?