Question

What does Gross domestic product (GDP) measure?

Answer 1

GDP measure the market value of all final goods and services produced in a country in a given period

Answer 2

To add, it is the basis to determine what is the richest country in the world.

Answer 3

"TheMan88" correctly pointed out...I would put it in laymen words...How much money a country has made in an year (keep it in mind that earnings = Savings + Investment) and also the time value of money compared against a benchmarked year...

Answer 4

Gross domestic product differs from GNP in that it is the income of the country without the value of exports included.

Answer 5

"Gross" means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for investment in new fixed assets or inventories, or for replacing depreciated fixed assets. "Domestic" means that GDP measures production that takes place within the country's borders. In the expenditure-method equation given above, the exports-minus-imports term is necessary in order to null out expenditures on things not produced in the country (imports) and add in things produced but not sold in the country (exports).( http://en.wikipedia.org/wiki/Gross_domestic_product#Determining_GDP)