Gross domestic product (GDP) is one of the most common indicators used to track the health of a nation's economy. It includes a number of different factors such as consumption and investment. It's also a key factor in using the Taylor rule. In this short article, we look at why GDP is such an important economic factor, and what it means for both economists and investors.
It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy. GDP is usually expressed as a comparison to the previous quarter or year.
