What is the definition of gdp? what contributes more to gdp, the production of an economy car or the production of a luxury car? explain. the farmer sells wheat to a baker for $2. the baker uses the wheat to make bread, which is sold for $3. what is the total contribution of these transactions to gdp? many years ago, peggy paid $500 to put together a record collection. today, she sold her albums at a garage sale for $100. how does this sale affect current gdp? explain why a nation’s value of production (gdp) equals its expenditures (spending) and also approximately equals national income. list the four demand side components of gdp. give an example of each. what does the "investment spending" component of gdp represent? what is the best gauge of economic well-being: gdp, real gdp, gdp per capita, or real gdp per capita? (‘per capita’ means the same as ‘per person’.) why? what does the term "real" mean? what production is not captured within the gdp statistic? what else that matters to "standard of living" is not captured within the gdp statistic?