What Is GDP (Gross Domestic Product)? Meaning & Example
Definition
GDP is the total value of goods and services produced in an economy over a period. It is the broadest measure of economic size and growth.
Related terms
A recession is a significant, widespread decline in economic activity lasting more than a few months. It often brings rising unemployment and falling business profits.
Business CycleThe business cycle is the recurring pattern of expansion, peak, contraction and recovery in an economy. Cycles vary greatly in length and intensity.
InflationInflation is the general rise in prices across an economy over time, which reduces what each unit of money can buy. Moderate inflation is normal, while high inflation erodes savings quickly.
What is GDP (Gross Domestic Product)?
GDP is the total value of goods and services produced in an economy over a period. It is the broadest measure of economic size and growth.
Can you give an example of GDP (Gross Domestic Product)?
If an economy's GDP grows 2% in a year, it produced about 2% more output than the year before, after adjusting for inflation in real GDP.