Introduction to Measuring Economic Activity: GDP and the Three Approaches

The lecture introduces key concepts in measuring economic activity, focusing on GDP and its importance for analysis and forecasting. It covers the history of GDP, developed by Simon Kuznets, and explains the three methods of measuring GDP: output, income, and expenditure. The lecture also discusses the challenges in measuring GDP accurately, such as tax avoidance and black market activities. Finally, it concludes with a preview of future lectures that will delve deeper into these topics.

What are the three measures of economic activity mentioned in the lecture?

Why is it essential to have a clear definition of gross domestic product (GDP) before exams?

How does measuring economic activity help in identifying trends?

What role do governments play in measuring economic activity?

Explain the significance of Simon Kuznets in the context of GDP.

What historical event led to the first measure of economic activity via GDP?

What is the importance of comparing GDP across different countries?

What are the different perspectives from which GDP can be measured?

Discuss the challenges in measuring economic activity accurately.

How do black market activities affect GDP measurements?