What does GDP measure?

The measure that accurately reflects what GDP represents is the monetary value of finished goods within a country's borders. Gross Domestic Product (GDP) quantifies the total value of all goods and services produced over a specific time period within a country's economy. This includes the output from businesses and government services made within the geographical boundaries, regardless of whether the producers are domestic or foreign entities. Thus, GDP serves as a crucial indicator of a country's economic performance and health.

The other options do not correctly describe GDP. National income derived from abroad pertains more closely to Gross National Product (GNP), which takes into account the income earned by residents from overseas investments. The economic growth rate over time refers to the change in GDP from one period to the next, not GDP itself. Average spending per capita involves dividing the total economic output by the population to assess individual spending power, which is not the definition of GDP.