219k views
2 votes
Gross domestic product measures Group of answer choices the value of all output in the economy. the total income of everyone in the economy. the total spending of everyone in the economy. all of the above

User Forforf
by
6.1k points

1 Answer

2 votes

Answer:

the value of all output in the economy.

Step-by-step explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

services not rendered to oneself

Activities not reported to the government

illegal activities

sale or purchase of used products

sale or purchase of intermediate products

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

User Victor Hugo
by
5.7k points