What does Gross Domestic Product (GDP) measure?
Understand the Problem
The question is asking about the definition of Gross Domestic Product (GDP) and what it measures in an economy. It is looking for a high-level understanding of economic indicators.
Answer
The total amount of goods and services produced and sold in a country during a set time
The total amount of goods and services produced and sold in a country during a set time
Answer for screen readers
The total amount of goods and services produced and sold in a country during a set time
More Information
GDP measures the monetary value of all finished goods and services produced within a country’s borders in a specific time period and is used to gauge the health of a country’s economy.
Tips
Confusing GDP with unemployment rate or interest rate changes are common mistakes. GDP specifically relates to the value of goods and services.
Sources
- Gross Domestic Product (GDP) Formula and How to Use It - investopedia.com
- What is GDP? - Bureau of Economic Analysis - bea.gov
- Gross domestic product - Wikipedia - en.wikipedia.org
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