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Gross Domestic Product (GDP)
The market value of all finished goods and services produced within a country in a year.
Finished goods
Goods that will not be sold again as part of some other good, such as cakes or eggs sold to consumers.
Intermediate goods
Goods used to produce finished goods, such as flour and eggs for baking, that are not counted in GDP.
Capital goods
Finished goods used to produce other goods, such as tractors sold to a farm, which are counted in GDP.
GDP registration
The process of calculating the total market value of finished goods and services produced in a given year.
Nominal GDP
The measure of a country's economic output without adjustments for inflation.
Real GDP
The measure of a country's economic output that is adjusted for inflation, providing a more accurate representation of economic growth.
Exports
Goods produced in one country and sold to another; exports contribute to the producing country's GDP.
Imports
Goods brought into a country from abroad; imports do not contribute to the importing country's GDP.
Limitations of GDP
GDP does not account for non-market transactions, such as environmental goods or services that don't have an observable market price.
