Gross Domestic Product (GDP)

What is Gross Domestic Product (GDP)?

The total value of goods and services produced in an economy during a given period, usually a year. A rise in GDP indicates that the economy has produced more output than in the comparison period, which often accompanies higher incomes, employment and demand, but the benefit is unevenly distributed: whether any individual business gains depends on its product, its market, its pricing position and whether it has spare capacity to serve additional demand.

This definition is part of the External Influences on Business Activity chapter in Cambridge O Level Business Studies.

Concepts related to Gross Domestic Product (GDP)

• economic growth
• Business Cycle
• consumer income