Gross Domestic Product, or as abbreviated, GDP:

GDP is a measure of the total market value of all final goods and services produced in a country during a year. In other words, GDP is total spending on newly produced goods and services. In the United States, annual GDP is about 14 trillion dollars, meaning that amount is spent on U.S output in one year.

Four general groups are buying what is produced. The households buying food, HDTVs, medical care and whatever else they want and can afford to spend constitute about 70 percent of GDP. Another 15 percent of GDP consists of spending by business firms to purchase new capital equipment, buildings, and inventories. Taking up about 19 percent of GDP is spending of government on items such as schools, highways, and Air Force F-16s. Finally, production of goods and services for export is 12 percent of GDP. This adds up to more than 100 percent, because 17 percent of U.S. spending on goods and services are produced overseas.

See Nominal GDP and Real GDP.