Final answer:
GDP (Gross Domestic Product) is a key economic indicator of a country's economic performance. It is calculated using a formula that includes consumption, investment, government spending, and net exports. As an example, the U.S. had a GDP of $18.9 trillion as of the fourth quarter of 2016.
Step-by-step explanation:
The GDP, or Gross Domestic Product, is a measure of the economic performance of a country. Based on the data provided, the GDP can be calculated using the formula GDP = C + I + G + (X - M), where C represents consumption, I represents investment, G represents government spending, and (X - M) represents net exports (exports minus imports)
From the chapters and explanatory notes, we understand that the U.S. had a GDP of $18.9 trillion as of the fourth quarter of 2016. In a different example mentioned, if we assume C is $2,000 billion, I is $50 billion, G is $1,000 billion, and net exports are represented by a value of ($20 billion - $3,030), we would add these figures together to find the GDP.
Real GDP and GDP per capita are important indicators of economic health and standard of living, respectively. Real GDP helps us analyze the depth of recessions and the speed of economic recovery, while GDP per capita gives insight into the average income and wealth of a country's citizens.