Gross Domestic Product (GDP)

What is Gross Domestic Product?

The total value of goods and services produced in a country over a period.

Understanding Gross Domestic Product

GDP is the broadest measure of an economy's size and growth. Real GDP adjusts for inflation; nominal GDP does not.

Two straight quarters of falling real GDP is a common, informal sign of recession.

\text{GDP} = C + I + G + (X - M)

Here, $C$ is consumption, $I$ investment, $G$ government spending, and $X - M$ net exports.