Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy's total product. total demand. total input. total output.

GDP is like the annual report card for a country's economy, showing how well it has performed over the year. When we look at GDP, we really see a snapshot of all the goodies produced—think of it as everything from the coffee you sip in the morning to the cars made in factories. It gives us insight into the nation's economic health and helps policymakers make informed decisions. In the real world, GDP influences everything from government spending to investments. When GDP is high, it often means businesses are thriving and consumers can spend more, which can lead to job creation and innovation. Conversely, a decline in GDP might signal economic trouble, prompting governments to step in through stimulus measures or shifts in policy to revitalize growth.