Series 62


Economic Fundamentals - Gross Domestic Product

A country’s Gross Domestic Product or GDP measures the overall health of a nation’s economy. The Gross Domestic Product is defined as the value of all goods and services produced in a country including consumption, investments, government spending, and exports minus imports during a given year.



Economists chart the health of the economy by measuring the country’s GDP and by monitoring supply and demand models, along with the nation’s business cycle. A country’s economy is always in flux. Periods of increasing output are always followed by periods of falling output. The business cycle has four distinct stages:



  1. Expansion
  2. Peak
  3. Contraction
  4. Trough

 



Phases Of An Economy

You May Also Like

Related Articles
  1. Investing

    How does FINRA differ from the SEC?

  2. Professionals

    Series 99

  3. Professionals

    Series 24

  4. Professionals

    Becoming A Registered Investment Advisor

  5. Professionals

    I have a CFA designation. Do I qualify ...

Trading Center