Lecture
This lecture explains how Gross Domestic Product (GDP) measures the total production of goods and services in an economy by using prices as a common denominator to add up different types of goods and services. It delves into the concept of value added, showing how prices inform about the value of goods and services, and how scarcity and willingness to pay contribute to the value of products. The lecture also covers the calculation of value added in the production chain, the role of value added tax (VAT) in the economy, and the implications of trade balances on GDP.