What does GDP stand for in economic terms?

GDP stands for Gross Domestic Product, which is a fundamental measure in economics. It represents the total monetary value of all finished goods and services produced within a country's borders during a specific time period, typically annually or quarterly. GDP is crucial for assessing the economic performance of a nation, analyzing growth trends, and making international comparisons.

Understanding GDP is essential as it allows governments, economists, and policymakers to gauge the health of the economy, make informed decisions regarding monetary and fiscal policy, and evaluate the standard of living over time. The focus on "domestic" emphasizes that it is specific to a country's own production, differentiating it from other measures that may involve international trade or profit calculations.