"Gross domestic Products (GDP) is the market value of all finished goods and services produced within a country in a year" (Cowen & Tabarrok, 2018, pg. 507). GDP is a frequently used means of quantifying the size and value of an economy. The value that it represents is found in even greater granularity within Value Added and Final Demand. Sustain growth of real GDP per person can transform a poor society into a wealthy one (Growth Rates, 2022, pg. 1). As a measure of a country's well being, GDP has some limitations: The exclusion of non-market transactions; The failure to account for or represent the degree of income inequality in society and to indicate whether the nation's rate of growth is sustainable or not. Because of this GDP may overstate the account of economic activity in nation's with rapidly depreciating capital stocks, with Nominal GDP increasing significantly (Nominal vs Real GDP, 2022, pg. 1). I believe life can improve without being captured in GDP be weighing both income and non-income variables such as life expectancy, literary rates, and environmental indicators using The Human Development Index (HDI), or The Genuine Progress Indicator (GPI).
Regent University. Module 3: Measuring GDP and Economic Growth (2022). The Growth Rates of Real GDP. Retrieved from https://courses.lumenlearning.com/atd-fscj-macroeconomics/chapter/growth-rates/
Regent University. Module 3: Measuring GDP and Economic Growth (2022). Nominal vs Real GDP. Retrieved from https://courses.lumenlearning.com/atd-fscj-macroeconomics/chapter/real-gdp-vs-nominal-gdp/
Modern Principles of Economics, 5th Edition (New York: Worth Publishers, 2021), Tyler Cowen & Alex Tabarrok