Gross Domestic Product (GDP)
Definition
Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders during a specific period (usually annually). It serves as an indicator of economic growth or contraction.
Analogy
Consider GDP as a report card for an entire country's economy. Just like how your report card shows your academic performance across different subjects, GDP reflects how well an economy is performing in terms of production and output.
Related terms
Real GDP: GDP adjusted for inflation, providing a more accurate measure of economic growth.
Nominal GDP: GDP measured at current market prices without adjusting for inflation.
Per Capita GDP: The average GDP per person, obtained by dividing the total GDP by the population.
"Gross Domestic Product (GDP)" appears in:
Study guides (5)
Additional resources (2)
Practice Questions (2)
- Which of the following is included in the calculation of Gross Domestic Product (GDP)?
- Which of the following is true about Gross Domestic Product (GDP)?
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