What is GDP — a country's "report card"
You always hear "GDP grew" on the news. But what is it, really? A simple explanation of the most used number in economics.
GDP (Gross Domestic Product) is the value of all goods and services produced in a country in a year. The bread from the bakery, the cars from factories, the haircut from the barber, the apps built by programmers — all added up. It's a kind of "turnover" of an entire country.
Why growth matters
When GDP rises, usually more is produced, there are more jobs, people are better off. When it falls, it's a sign of crisis. It's not a perfect measure — it says nothing about how fairly the money is shared — but it's the compass governments and central banks follow.
On a small scale, in Kosron
The economy in the Kosron game is a miniature GDP: the more transactions, loans and deposits happen, the more active the game's "economy" is. It's a way to see, on a small scale, how money moves through a society.
