00:01
So let's just start off with the basic explanation of gdp.
00:04
Well, if you want, i'll tell you that the answer is b.
00:07
Right up front, you don't want to watch the video, but i think you should try to walk through it is, right? so gross domestic product is defined as very simply the sum of all final goods produced domestically.
00:31
At market prices, right? that is just simply the definition of gdp.
00:42
And from that perspective, the answer has to be just all final goods, right? the answer is all final goods.
00:53
But there's a little bit more going on here, right? to break it down, gross is equals to, it means you don't subtract depreciation, right? each year, factories are breaking down, machines are becoming obsolete, tools are breaking.
01:09
That's what we call depreciation, right? domestic means that you are only within borders, right? so no multinational production, right? if coke, an american company goes out and opens a bottling plant in mexico, that's not part of american gdp...
