What does Gross Domestic Product (GDP) represent in an economy?

Gross Domestic Product, or GDP, represents the total value of all goods and services produced in a country over a specific time period, usually a year. It helps us understand the size and health of an economy, showing how much economic activity is happening. For example, if a country produces cars, food, and technology, GDP adds up the value of all these products and services to give a clear picture of economic performance. When GDP increases, it usually means that people are working more, businesses are thriving, and the economy is growing. Conversely, a decrease in GDP can indicate economic problems, such as job losses or reduced spending.