Quote: "Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period by a country or countries."
The market value of all final goods and services produced within a country's borders in a given time period. It is one of the most commonly used measures of a nation's economic output and is used to gauge the overall health of an economy.
Definition of GDP: A measure of a country's total economic output that includes all goods and services produced within its borders over a certain period of time, usually a year.
Components of GDP: The four components of GDP are consumption, investment, government spending, and net exports.
Calculation of GDP: There are three methods of calculating GDP: the production approach, the income approach, and the expenditure approach.
Real GDP vs. Nominal GDP: Real GDP is adjusted for inflation while nominal GDP is not. Real GDP gives a more accurate representation of a country's economic output.
GDP per capita: This is GDP divided by the total population of a country. It measures the economic output per person.
Limitations of GDP: GDP does not measure the distribution of wealth, quality of life, and environmental factors. It also does not measure the informal economy and non-monetary transactions.
Business cycles: GDP is closely linked to the business cycle, which is the fluctuation of economic activity over time.
International comparisons: GDP is often used to compare the economic performance of different countries.
Impacts of government policies: Changes in government policies such as tax cuts, increased government spending, or a change in interest rates can affect GDP.
Influence of external factors: External factors such as natural disasters, wars, or changes in global trade can impact a country's GDP.
Nominal GDP: The value of all goods and services produced in a country within a specific period of time, often calculated using current market prices.
Real GDP: The value of all goods and services produced in a country within a specific period of time, adjusted for inflation.
Per capita GDP: The Gross Domestic Product divided by the total population of a country, giving a measure of the average income per resident.
Gross National Product (GNP): The value of all goods and services produced by a country's citizens (whether living within the country or abroad) in a specific period of time.
Purchasing Power Parity (PPP) GDP: The value of all goods and services produced in a country, adjusted for differences in the cost of living and purchasing power.
Net Domestic Product (NDP): The Gross Domestic Product minus depreciation of the country's physical capital.
Gross Domestic Income (GDI): The total income generated by the production of all goods and services within a country within a specific period of time.
Real Gross Domestic Income (RGDI): The Gross Domestic Income adjusted for inflation.
National Income: The total income earned by a country's citizens, including wages, salaries, profits, and rents.
Disposable Income: The amount of income that individuals have available to spend, after taxes and other deductions.
Gross Fixed Capital Formation (GFCF): The value of all investments made in non-financial assets, such as machinery, buildings, and infrastructure.
Net exports: The value of all goods and services exported by a country, minus the value of all goods and services imported into the country.
Total Domestic Demand (TDD): The total amount of goods and services demanded within a country, calculated by adding the value of all consumer spending, investments, government spending, and net exports.
Output Gap: The difference between a country's actual GDP and its potential GDP, indicating whether an economy is operating above or below its full capacity.
Gross State Product (GSP): The value of all goods and services produced within a specific state or region of a country.
Regional GDP: The value of all goods and services produced within a specific region or group of countries.
Green GDP: The Gross Domestic Product adjusted to take into account the environmental costs of economic activity.
Blue GDP: The Gross Domestic Product adjusted to take into account the economic value of marine and coastal resources.
Human Development Index (HDI): A composite index that measures a country's achievements in economic, social, and environmental development, using indicators such as life expectancy, education, and income.
Happiness Index: A measure of the overall well-being of a country's citizens, based on subjective factors such as life satisfaction, personal freedom, social support, and generosity.
Quote: "GDP is most often used by the government of a single country to measure its economic health."
Quote: "Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator."
Quote: "GDP definitions are maintained by several national and international economic organizations."
Quote: "The Organisation for Economic Co-operation and Development (OECD) defines GDP as 'an aggregate measure of production equal to the sum of the gross values added of all resident and institutional units engaged in production and services (plus any taxes, and minus any subsidies, on products not included in the value of their outputs).'"
Quote: "An IMF publication states that, 'GDP measures the monetary value of final goods and services—that are bought by the final user—produced in a country in a given period (say a quarter or a year).'"
Quote: "GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on the international market."
Quote: "Total GDP can also be broken down into the contribution of each industry or sector of the economy."
Quote: "The ratio of GDP to the total population of the region is the per capita GDP (also called the Mean Standard of Living)."
Quote: "GDP is often used as a metric for international comparisons as well as a broad measure of economic progress."
Quote: "Critics of the growth imperative often argue that GDP measures were never intended to measure progress and leave out key other externalities, such as resource extraction, environmental impact, and unpaid domestic work."
Quote: "Critics frequently propose alternative economic models such as doughnut economics which use other measures of success or alternative indicators such as the OECD's Better Life Index as better approaches to measuring the effect of the economy on human development and well being."