Market priced vs Factor priced GDP.

[Norman]

Hey again.

I swear, this is the last stupid question I will ask here.

But which nominal GDP measure is the "real measure" without double counting?

By this I mean, which measures how much money was spent?

 

[Norman]

Bom!

 

[Supposn]

Hey again.

I swear, this is the last stupid question I will ask here.
But which nominal GDP measure is the "real measure" without double counting?By this I mean, which measures how much money was spent?

Norman, the GDP is useful as a comparative figure.
It doesn’t matter if products are wholesale or retail priced as long as all of the calculations are conducted in a similarly CONSISTENT manner. We want to compare oranges with oranges. Is that the question that you have in mind?

Purchasing powers of currencies change over the years. If we’re making annual comparisons, the amounts should be adjusted to reflect the currencies’ purchasing power of the GDP’s year. If we’re comparing it to an average or a median amount, (e.g. median wage for example), it’s often helpful to use the GDP per capita.

[The GDP per capita related to the median wage indicates the nation’s production per capita and to what extent that production has been distributed throughout the nation’s population]. I think these are certainly among if not the most significant economic indicators.]

Respectfully, Supposn