Reply To: Definition of GDP


Thank you Professor Herbener

When I consider that the capital investment/expenditures are counted in the GDP, the difference between GO and GDP is going to be the cost of producer goods used in his processes and the value of his products. Obviously the GO is going to be a much bigger number. I don’t see what the excitement is about.

I guess there would be fluctuations because of a buildup or paucity of inventories in the capital goods producers. Which I guess could be used for forecasting.