What is the Gross Domestic Product?

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romio
Posts: 20
Joined: Sat Jun 19, 2010 2:59 pm

Re: What is the Gross Domestic Product?

Post by romio »

Hello

A measure of the market value of goods and services produced by a nation. Unlike Gross National Product, GDP excludes profits made by domestic firms overseas, as well as the share of reinvested earning in domestic firms' foreign-based operations.

The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period, classically a year. The GDP considers the market value of goods and services to arrive at a number which is used to judge the growth rate of the economy and the overall economic health of the nation concerned. As an economic measure, the GDP can be a very useful yardstick, but it has some serious flaws which have led some people to propose the use of alternate measures of economic and social well being.
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