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What is 'Gross Domestic Product - GDP'. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.
Real GDP measures the final output of all goods and services produced in the United States in the prior quarter. It does not measure sales. For example, the BEA counts a new car when it's shipped to the dealer. The BEA records it as an addition to inventory, which increases GDP.