Understanding Gross Domestic Product (GDP) and Inflation

Gross Domestic Product (GDP) is the market value of final goods and services produced within a country during a specific period. It emphasizes the market value, meaning more expensive items have greater weight. Final goods and services are those consumed by the end user, while intermediate goods are used in producing final goods and are excluded from GDP to prevent double counting. GDP contributes to understanding economic health, encompassing metrics like national output, inflation, and employment. Additionally, the Consumer Price Index is used to adjust for inflation and assess its costs, impacting economic well-being.