Macroeconomics: The Definition of GDP and Its Implications

GDP is the universal measure of income among different countries. We’ve heard of the term GDP multiple times, but what exactly is GDP, and how do we measure an entire country’s income? GDP, Gross Domestic Product, measures the total value of all final goods and services produced in the economy of a country during a given year. Important points that need special attention in the definition of GDP are ‘total,’ ‘final,’ ‘country,’ and ‘a given year.’