After reading this chapter, you should be able to

11.1 Define gross domestic product (GDP) and explain why GDP equals both aggregate expenditures and aggregate income.

11.2 Describe the expenditure approach and the value-added approach to measuring GDP.

11.3 Explain how the Bureau of Economic Analysis (BEA) computes gross national product (GNP), net national product (NNP), national income (NI), personal income (PI), and disposable personal income.

11.4 Explain how the BEA measures real GDP.

11.5 Discuss some of the deficiencies of GDP as a measure of economic welfare.