Final answer:
Gross Domestic Product (GDP) is the total market value of all goods and services produced within a country during a specific time period, and it's used as a measure of a country's economic health. The answer to the question is (d) Value of all goods and services produced in a country.
Step-by-step explanation:
Gross Domestic Product (GDP) is the total market value of all goods and services produced within a country during a specific time period. It encapsulates the health of a country's economy and represents the size of its economy. To compute GDP, one must quantify the output of goods and services, multiply them by their current market prices, and sum up the totals. This calculation demonstrates how much has been produced and at what value, which can be compared from year to year or between different countries.
The correct answer to the student's question is (d) Value of all goods and services produced in a country. This aligns with the definition of GDP as a measure of the total production in an economy. It should not be confused with the percentage of workers who are out of work (unemployment), the increase in the average level of prices (inflation), or the rate of growth of residential construction, which are related but separate economic indicators.
Economic growth is often gauged by tracking changes in GDP, and a stable increase in GDP is typically indicative of a healthy, growing economy. Conversely, negative growth may signal a recession. It's important to note that exports, which are goods and services produced domestically but sold abroad, also contribute to a country's GDP, and the ratio of exports to GDP can provide insights into the role of international trade in an economy.