Gross Domestic Product: 

Gross domestic product (GDP) is the market value of goods and services produced by labor and property in the United States, GDP or Gross Domestic Product is a measure of the overall economic output within a country's borders over a particular time, typically a year.GDP is calculated by adding together the total value of annual output of all that country's goods and services. GDP can also be measured by income by considering the factors producing the output the capital and labor or by expenditure by government, individuals, and business on that output. Real GDP is the gross domestic product adjusted for inflation. Nominal GDP is the gross domestic product without taking into account inflation. GDP or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. GDP is important for three reasons: 

• Most importantly, it is used to determine if the U.S. economy is growing more quickly or more slowly than the quarter before, or the same quarter the year before.
• It is also used to compare the size of economies throughout the world.
• It is to compare the relative growth rate of economies throughout the world.

Investors look at GDP growth to see if the economy is changing rapidly so they can adjust their asset allocation. In addition, investors compare country GDP growth rates to decide where the best opportunities are. The Federal Reserve (Fed) uses the GDP growth rate as one of the indications of whether the economy needs to be restrained or stimulated. The ideal GDP growth rate is neither fast enough to cause inflation nor slow enough to cause recession. Most economists agree that the ideal GDP growth rate is in the range of 2-3%.