Gross Domestic Product (GDP) | Definition, Formula, & Investing Strategies
Measuring GDP is like taking someone’s temperature. It’s a single number that tells you if things are generally going well or if there’s some underlying problem or set of problems sending things off track. That said, GDP has advantages over a thermometer’s single data point.
If the economy is laid up in bed, GDP provides insight into exactly what’s wrong and why, including whether it’s an isolated infection or a full-on health emergency. Unlike other economic reports, GDP collects and computes numbers from all across the economy—not just from a single isolated section—and spits back a diagnosis.
What is gross domestic product (GDP)?
Gross domestic product measures the total value of all goods and services produced in the…
