Gross Domestic Product
A monetary measure of the market value of all the final goods and services produced
Real World Example
During the Cold War, Gross Domestic Product (GDP) was crucial as it showcased the economic strength of nations, especially between the U.S. and the Soviet Union. Both superpowers used GDP to demonstrate their economic systems' superiority, capitalism versus communism, as a measure of prosperity and global influence. GDP responded to the need for a clear, quantifiable way to compare national economies during a time of intense rivalry. Today, GDP remains important because it helps gauge a country's economic health, influencing government policy, business decisions, and individual livelihoods. For instance, if GDP is growing, businesses might expand and hire more workers, potentially providing more job opportunities for you or your community.
