Which economic indicator represents the total value of all goods and services produced in a country?

The total value of all goods and services produced within a country is represented by Gross Domestic Product (GDP). This measure provides an aggregate view of economic activity, capturing the monetary value of all finished goods and services produced in the domestic market over a specific period, usually quarterly or annually. GDP serves as a comprehensive indicator of a nation’s economic performance, reflecting the economy’s size and health.

In contrast, the inflation rate measures the rate at which the general level of prices for goods and services is rising, indicating the purchasing power of a currency. The Consumer Price Index (CPI) specifically tracks changes in the price level of a market basket of consumer goods and services, providing insight into inflation but not reflecting overall production. The unemployment rate, on the other hand, measures the percentage of the labor force that is unemployed and actively seeking employment, which does not directly correlate with the total production value of the economy. Thus, GDP stands out as the key indicator for total economic output.