In macroeconomics, what is the full form of the abbreviation GDP, which is widely used to measure the size of an economy?

Introduction / Context:
GDP is one of the most frequently used abbreviations in economics, business news, and government reports. It is a key indicator of the total value of goods and services produced within a country over a given period. This question tests basic familiarity with the full form of GDP, which every student of economics and general knowledge should know, since many other concepts and ratios are built upon it.

Given Data / Assumptions:

• The term GDP is used in the context of measuring the size of an economy.
• Options suggest several possible expansions of the abbreviation.
• We assume a standard introductory macroeconomics definition.
• The focus is on identifying the correct expansion, not on calculating the value.

Concept / Approach:
GDP stands for Gross Domestic Product. The word gross indicates that depreciation has not been subtracted, domestic refers to production within the domestic territory of the country, and product signifies the value of final goods and services produced. It is usually measured annually or quarterly and is widely used to compare economic performance across countries and over time. None of the other options given corresponds to the standard meaning used in textbooks and official statistics.

Step-by-Step Solution:
Step 1: Recall that GDP is the sum of the market value of all final goods and services produced within a country in a specific period. Step 2: Match each letter of the abbreviation with the words gross, domestic, and product. Step 3: Compare this known expansion with the option Gross Domestic Product, which fits perfectly. Step 4: Examine the other options, which mention terms like ratio, revenue, receipts, and potential, none of which reflect the standard definition of GDP. Step 5: Conclude that the full form of GDP is Gross Domestic Product.

Verification / Alternative check:
Any basic economics textbook, article, or government document discussing GDP will spell it out as Gross Domestic Product at least once. International organisations such as the World Bank and International Monetary Fund also define GDP with this expansion. Students can quickly check the front pages of statistical reports or online glossaries to confirm that no alternative official full form exists for this abbreviation in the context of economic measurement.

Why Other Options Are Wrong:
Global Domestic Ratio does not correspond to any standard macroeconomic term and mixes global with domestic in a confusing way.
Gross Depository Revenue is not a recognised concept in national income accounting and incorrectly uses the word depository.
Global Depository Receipts refer to financial instruments that represent shares of a foreign company, and have nothing to do with measuring the entire output of an economy.
Gross Domestic Potential could be used informally to describe potential output, but it is not the established full form of the abbreviation GDP.

Common Pitfalls:
Because many financial abbreviations sound similar, students may confuse GDP with terms like GDR, which stands for Global Depository Receipts. Another pitfall is to misremember the meaning of gross and domestic, which are technical terms in national income accounting. To avoid such confusion, learners should repeatedly associate GDP with Gross Domestic Product and remember that it captures the value of production within the domestic territory, before subtracting depreciation.

Final Answer:
In macroeconomics, the full form of GDP is Gross Domestic Product.