Gross domestic product

In macroeconomics, the gross domestic product is a measure of the market value of all final goods and services produced in a country over a time period (usually a year). It’s given by:

$$GDP=C+I+G+(X-M)$$

where

• $C$ is consumption spending, i.e., purchases by households on final goods and services.
• $I$ is investment spending, i.e., by firms on capital goods (like buildings, machinery, equipment, etc.).
• $G$ is government spending, including public investment.
• $X-M$ is net exports, where $X$ is the value of all exports and $M$ is the value of all imports.