Gross Domestic
Product
GDP is defined as "the total value of goods and services
produced within the borders of the United States, regardless of who owns the
assets or the nationality of the labor used in producing that output".[2] The growth of output is
measured in real terms, meaning increases in output due to inflation have been
removed.
GDP growth is used to
forecast demand for goods and services. Since GDP is an indicator of the economy
as a whole, it may not reflect production within various segments of the
economy. The U.S. economy continues to mature and growth rates will moderate.
The present Federal Reserve policy attempts to hold economic growth to an annual
rate of 3 percent.