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If an American woman purchases a pair of shoes in a local shoe store, it would increase Consumption and GDP.
What is GDP?
GDP is a monetary measure of the market value of all the final goods and services produced and sold in a specific period by countries. Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator.
GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries. Therefore, using a basis of GDP per capita at purchasing power parity may be more useful when comparing living standards between nations, while nominal GDP is more useful when comparing national economies on the international market.
The ratio of GDP to the total population of the region is the per capita GDP.
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