Economic Growth & GDP

EconomicsStarter Level

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Question

What is GDP and why is it important?

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Answer

Definition

GDP, or Gross Domestic Product, measures the total value of all goods and services produced in a country during a specific period. It is important because it indicates the health of an economy.

Example

For instance, if a country's GDP grows from $1 trillion to $1.1 trillion, it suggests the economy is expanding.

Quick Tip

Think of GDP as the 'score' of an economy's performance.

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