What is Gross Domestic Product (GDP) used to measure?

Gross Domestic Product (GDP) 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, usually a year. It encompasses the economic output from various sectors, including manufacturing, services, and agriculture, reflecting the overall productivity and economic activity within the nation.

Using GDP as a measure helps policymakers, economists, and analysts assess the economic performance of a country, compare it to others, and identify trends over time. It provides valuable insights into the standard of living and economic health of a nation, as higher GDP figures typically signify greater economic activity and prosperity.

The other options, while related to economic assessments, do not capture the essence of GDP. The total market value of all securities pertains to the financial markets, while the health of the banking sector focuses on a specific segment of the economy. The amount of foreign investment relates to capital influx but does not define the total economic activity measured by GDP. Therefore, the total value of all domestic production is the most accurate description of what GDP is used to measure.