What does GDP stand for in economic terms?

Gross domestic product is a critical economic metric that represents the total monetary value of all finished goods and services produced within a country's borders in a specific time period, typically annually or quarterly. It serves as a broad measure of overall economic activity and provides insight into the economic health of a nation.

The calculation of GDP includes only final goods and services, meaning it avoids double counting by excluding the value of intermediate goods used in production. GDP can be measured using three approaches: production (adding up output), income (summing up income earned), or expenditure (total spending on goods and services).

Understanding GDP is essential for assessing the economic performance of a country, comparing economic productivity and living standards between nations, and informing government and central bank policies. Thus, recognizing GDP as 'Gross Domestic Product' is fundamental in economic discussions and analyses.