GDP stands for "Gross Domestic Product." It is a key economic indicator that measures the total value of all goods and services produced within a country's borders over a specific time period, typically annually or quarterly. GDP is used to gauge the size and health of an economy, providing insights into economic performance, growth, and living standards. Rising GDP generally indicates economic expansion and increased production, while a falling GDP can signify economic contraction. Policymakers, investors, and economists closely monitor GDP to design strategies that stabilize or stimulate economic growth, making it an essential component of monetary policy.