Question

Define ‘Gross Domestic Product’ and explain its importance.

Hint:

GDP measures national income and is a key indicator of economic health.

Answer 1

Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country during a specific period, usually a year.
Importance:
It reflects the economic performance of a country.
It helps in comparing economic productivity across countries and time.
Policymakers use it to formulate economic policies and allocate resources.