What two-word term describes goods and services produced within a country in a year?

The two-word economic concept describing the value of goods and services produced within a country in a year is Gross Domestic Product, commonly abbreviated GDP.

GDP measures the market value of final goods and services produced inside a country’s borders during a specified period, usually one year or one quarter. It includes production by foreign-owned companies operating domestically, because the activity occurs within the country. It does not include production by a country’s citizens or companies located abroad.

Economists commonly calculate GDP through consumption, investment, government spending, and net exports. The expenditure formula is written as Y = C + I + G + (X − M), where exports are added and imports are subtracted so foreign production is not counted as domestic output.

GDP is useful for comparing economic size and tracking growth, but it is not a complete measure of well-being. It does not show how income is distributed, account fully for unpaid work, or reveal whether economic gains improve living standards. Gross National Product, or GNP, instead focuses more on national ownership.