What is the Gross Domestic Product (GDP)?

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What is the Gross Domestic Product (GDP)?

The Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders during a specific period, typically a year. It is used as an indicator of the economic health and size of a country's economy. GDP takes into account the consumption, investment, government spending, and net exports (exports minus imports) within a country. It is often used to compare the economic performance of different countries or to track the growth or contraction of an economy over time. GDP can be calculated using either the expenditure approach, which adds up all the spending on final goods and services, or the income approach, which adds up all the incomes earned by individuals and businesses in the economy.