What does GDP stand for in economics?

The correct interpretation of GDP in economics is "Gross Domestic Product." This term is used to quantify the total value of all final goods and services produced within a country's borders over a specified period, typically measured annually.

Gross Domestic Product is a critical economic indicator as it provides a broad picture of a country's economic health. It encompasses various sectors of the economy, including consumer spending, business investments, government spending, and net exports (exports minus imports). Understanding GDP helps policymakers, researchers, and investors gauge the performance of an economy and make informed decisions based on economic growth or contraction.

While other options reference aspects of economic production, they do not capture the complete definition and significance of GDP that "Gross Domestic Product" conveys. The term emphasizes both the gross nature of the output and its domestic focus, which are essential for accurately understanding and discussing economic performance.