Gross Domestic Product (GDP)
Definition
GDP is the total value of all goods and services produced within a country in a given period.
Analogy
Think of GDP as the score in a football game. It's the total number of points scored by a team, which gives us an idea about how well they performed during the game. Similarly, GDP gives us an idea about how well a country's economy is performing.
Related terms
Nominal GDP: This refers to the monetary value of all finished goods and services made within a country during a specific period but doesn't account for inflation or deflation.
Real GDP: This is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in one year, expressed in base-year prices.
Gross National Product (GNP): This measures the value of goods and services that a country's citizens produce regardless of their location.
"Gross Domestic Product (GDP)" appears in:
Study guides (1)
Practice Questions (8)
Which of these best describes Gross Domestic Product (GDP)?
What does the Gross National Income (GNI) account for that the Gross Domestic Product (GDP) does not?
How do geographers use Gross Domestic Product (GDP) data?
In which continent are most of the countries with low Gross Domestic Product (GDP) per capita located?
How does Gross Domestic Product (GDP) contribute to assessing a country's development?
Why might economists criticize Gross Domestic Product (GDP) per capita as an inadequate measure for comparing economic well-being across nations?
What historical events could be tied to changes in Gross Domestic Product (GDP) growth rate between China and Russia?
Which nation is least likely to have a high Gross Domestic Product (GDP) per capita?
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