Question

What does GDP stand for and how do we use it when comparing countries?

Answer 1

GDP or gross domestic product is the monetary value of all the finished goods and services in the economy at a given period of time, For example in an economy 100 breads and 100 pie are produced and the overall value of the goods is $100 in a year then the GDP increased by $100 in that year.

To compare GDP we generally compare the monetary value of goods and services produced over the year and the value of it. It can be expressed in terms of the percentage growth over the period of time.