Eco 1102: chapter 5) measuring a nation"s income. Microeconomics: the study of how individuals and how firms make decisions and how they interact in markets. Macroeconomics: the study of economy-wide phenomena, including inflation, unemployment, and economic growth. Gross domestic product (gdp): measures the total income of a nation; the most closely watched economic statistic because it is the best measure of a society"s economic well-being. For an economy as a whole, income must equal expenditure. Gdp: the market value of all final goods and services produced with a country in a given period of time. Gdp adds together many different kinds of products into a single measure of the value of economic activity. It includes all items produced in the economy and sold legally in markets. Gdp also includes the market value of the housing services provided by the economy"s stock of housing.