I know the basic definition but it really doesn’t click in my head, kindly shade more light
In: Economics
you do work for your job. That has value. Your neighbor also does work for their job. That also has value. Infact, your entire city does work for their jobs. ALL of that has value.
And yours isnt the only city in your country, ALL of the cities have people doing work for their jobs. ALL of that ALSO has value.
And the total value of everyone in all your cities doing all their jobs is the GDP of your nation.
Everything in an economy has some form of value, be that someone creating music, or building a car, or cutting hair. The total value of all that in a country is the GDP. Adding up the GDP of each country and making allowances for different population sizes allows you to compare different countries. https://youtu.be/e0wQVONapXM
It’s the total value of all goods and services produced by a country in a specified amount of time. For example, it’s all the bananas, chocolates, haircuts, massage, houses, apartments, cars, radios, cellphones, etc. produced by a country in a specified amount of time (usually a year). We use GDP as a metric of economic growth because we argue that producing more goods and services is better for society (there’s more goods and services available to share with everyone). Hope this helps 🙂
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