Final answer:
Gross Domestic Product (GDP) is the total market value of all goods and services produced within a country over a specific time period, like one year, and is used to measure a country's economic output and wealth.
Step-by-step explanation:
Definition of Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is a comprehensive measure of the economic output of a country. It represents the total market value of all goods and services produced within a country in a specific time period, usually one year. Economists use GDP to gauge a country's economic performance and to compare its productivity and wealth with other nations. GDP encompasses various aspects of the economy including consumer spending, government expenditures, investments, and the net exports of a country (– imports). When analyzing the size of an economy, the GDP is a crucial indicator, as it reflects the capacity of a country to produce goods and services and thereby supports estimates of the standard of living. It is important to note that while a high GDP can indicate a wealthy nation, per capita GDP is often examined to account for population differences and to get a more accurate indication of the individual prosperity within a country.