Once GDP was introduced to us in class, it remained an extremely prevalent topic throughout the course. Gross domestic product is the sum of the value of final goods and services produced and exchanged through legal and organized markets within a country and over a period of time. Furthermore, GDP is composed of total production and total income.
GDP per capita is a measure of the average income per person within a period in a country. GDP per capita is different from GDP. This is when some of the topics specific to macroeconomics (vs. microeconomics) were brought to my attention, and I realized I would be learning the "behind the scenes" about everything that makes our country work, our economy work, and how everything relates to one another causing macroeconomics to be the "big picture" economics.
We can all thank one economic phenomenon that has had a positive impact on our lives over a long period of time: Long-run Economic Growth. We can thank the improvements in labor productivity, which itself is due to improvements in technology, human capital, and capital.
The part of this topic to note is how this relates to business cycles. Below is an image of one full business cycle.
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