what is GDP
What is GDP
The total monetary value of all goods and services produced within a country’s borders in a specific time period.
Governments track GDP to measure this overall condition of the economy.
national economic performance
GDP growth shapes these kinds of decisions about where public money should go.
government spending decisions
GDP is valued for being this, making it easy to measure and use.
standardized / straightforward
GDP says nothing about how this is distributed among people.
Income
The "P" in GDP stands for what
Product
GDP helps guide these two types of policy.
fiscal and monetary policies
If GDP slows down, governments often increase spending to boost this
Economic demand
GDP makes comparisons easy across these two dimensions.
time and countries
GDP ignores this type of unpaid work, such as caregiving.
household labor / caregiving
GDP only measures this type of activity, leaving unpaid labor out.
Market activity
When GDP slows, governments often spend on things like highways or schools to do this.
create jobs / stimulate demand?
If GDP grows too fast, central banks raise interest rates to prevent this.
Inflation
GDP correlates with access to this, examples include water, energy, and transportation.
infrastructure
Name one measure of quality of life that GDP does not capture.
health / happiness / education
Despite being widely used, GDP was never designed to be a measure of this broader concept.
Well-being
When GDP grows too quickly, central banks may raise this to fight inflation.
interest rates
GDP-focused policies sometimes ignore this long-term priority.
sustainability
Higher GDP is often linked to improvements in these services, such as schools and hospitals.
Public Services
GDP does not measure whether growth harms this.
The enviroment