What did you do today? Whether it was mowing lawns or baking cakes, the value of your work is part of the total value produced in our economy each day.
The economy's total output, called gross domestic product—GDP for short—is the subject of the latest in the Atlanta Fed's video series. The video's engaging graphics and straightforward examples help explain real versus potential GDP.
Measuring potential GDP isn't a perfect science, so the video lays out some of the rules that apply to calculating the economy's potential, and how those measures affect the Federal Reserve's monetary policy. The Federal Reserve closely monitors real and potential GDP because it is charged with setting its policies so that, over time, the economy is performing at its full potential.
Want to know more about GDP and the work of the Fed? Visit The Fed Explained to watch the video. There, you'll find a host of additional resources to help you learn about economic concepts and the work of the Federal Reserve.
