Gross Domestic Product (GDP)
📈 Investing
Quick Definition
Gross Domestic Product (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.
Formula
GDP = C + I + G + (X - M)Examples
- 1The U.S. GDP increasing indicates economic growth, suggesting a healthy economy.
- 2A decline in GDP during a quarter might signal a recession, prompting government interventions.
- 3Comparing the GDP of different countries helps in assessing their economic size and health.
- 4GDP per capita is used to gauge the economic well-being of a country's average resident.
Tags
GDPeconomic-indicatornational-economyeconomic-growthmacroeconomics
Related Terms
Other terms you might find helpful
Economic Growth
Economic growth refers to the increase in the production of economic goods and services, compared from one period of time to another.
Fiscal Policy
Fiscal policy refers to the government's use of spending and taxation to influence the economy.
Inflation
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Monetary Policy
Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.
Quick Info
Category:Investing
Difficulty:basic
Last Updated:6/19/2025