This video explains the concept of Gross Domestic Product (GDP), which is the value of all final goods and services produced in an economy during a given period. It discusses how GDP is measured, its importance in determining the size of an economy, and the difference between nominal GDP and real GDP. In addition, GDP per capita, economic growth, and appropriate growth rates for developed and emerging economies are discussed. It also explains how GDP is calculated from the point of view of spending and aggregate demand, and how economic policies can influence these variables to promote economic growth.