How is GDP typically measured?

Gross Domestic Product (GDP) is a key economic indicator used to measure a country's economic performance. It reflects the total dollar value of all goods and services produced within a country's borders over a specific time period, usually annually or quarterly. This measurement captures the overall economic activity and health of an economy.

In this context, GDP encompasses various components, including consumer spending, business investment, government spending, and net exports (which is the difference between what a country sells to others and what it purchases). Since GDP accounts for everything produced in a country, it provides a comprehensive snapshot of economic productivity.

The other options do not accurately capture the standard definition of GDP. Average income per household provides insights into the standard of living but does not account for total economic output. Employment rates focus on job availability and labor market conditions rather than the total value of production. Government expenditure may contribute to economic activity, but alone, it does not reflect the broader measure of all goods and services produced. Thus, the total dollar value of all goods and services produced stands out as the most accurate representation of GDP.