Gross Domestic Product, or GDP, is a term that you have probably heard before, but what exactly does it mean? In short, GDP is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.While there are other ways to measure economic activity and well-being, such as unemployment rates or consumer confidence indices, nothing beats GDP when it comes to providing an overall snapshot of how things are going economically in any given country. This is why economists and policy makers pay close attention to changes in GDP over time; by tracking how this figure changes from quarter to quarter or year to year they can get an idea about whether the economy is growing or contracting.There are some criticisms that can be levelled at using GDP as our primary indicator of economic health however. For one thing, it doesn’t take into account important factors such as income inequality or environmental degradation. Furthermore, because it measures only finished goods and services (rather than inputs like labour hours), fluctuations in GDP may not always accurately reflect what is happening on the ground economically speaking. Despite these shortcomings however, most experts agree that Gross Domestic Product remains one of the best available tools for assessing national economies.In economics, gross domestic product (GDP) is the value of all final goods and services produced within a country's territory during one year. It is also referred to as national output and net domestic product (NNDP). The total value of all completed products, regardless of whether they are sold or re-produced, is then divided by the number of units in a country or region.If a country's gross domestic product is $100 billion, it means food, clothes and car are all made. In other words, if you live in the US and have $100 to spend on whatever you want? Then buy clothes, food and cars (with money).
