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GDP
(Gross Domestic Product)
GDP (Gross Domestic Product) measures a country's total economic output (goods/services produced) in a given period. The primary indicator of economic health, with nominal GDP (current prices) and real GDP (inflation-adjusted) versions.
The U.S. GDP hit $26.2T in 2023 (CIA World Factbook). Components include consumption (70% of U.S. GDP), investment, government spending, and net exports. The Fed and ECB use GDP growth to guide monetary policy—two consecutive quarterly declines signal a recession. Criticisms include ignoring inequality (top 1% capture disproportionate gains) and informal economies (e.g., cash-only businesses). Alternative metrics like Genuine Progress Indicator (GPI) adjust for sustainability.
The U.S. GDP hit $26.2T in 2023 (CIA World Factbook). Components include consumption (70% of U.S. GDP), investment, government spending, and net exports. The Fed and ECB use GDP growth to guide monetary policy—two consecutive quarterly declines signal a recession. Criticisms include ignoring inequality (top 1% capture disproportionate gains) and informal economies (e.g., cash-only businesses). Alternative metrics like Genuine Progress Indicator (GPI) adjust for sustainability.