What does Gross Domestic Product (GDP) measure?

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country over a specific period, usually a year. This metric serves as a comprehensive indicator of a nation's overall economic activity and health. It reflects the economic productivity of a country and is used by policymakers, economists, and analysts to assess economic performance, make comparisons to other nations, and guide economic policy.

Measuring the total production of goods and services allows GDP to capture both the size and growth rate of an economy, providing insights into how well an economy is performing and how it is changing over time. This is crucial for understanding economic cycles and making informed decisions regarding investment, fiscal policy, and other economic strategies.

While the other options mention aspects related to the economy, they do not accurately define GDP. For instance, the measurement of individual wealth refers to net worth, not GDP; total imports and exports pertain to trade balance rather than total production; and employment figures relate to labor market conditions rather than economic output directly. Thus, understanding that GDP focuses on production allows for a clearer understanding of a country's economic dynamics.