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The total dollar amount of all final goods and services purchased within the nations borders in each year is known as the ____.

A. economic indicator
B. Gross domestic product
C. consumer price index
D. business cycle

User Mayor
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Answer:

b. Gross domestic product.

Explanation:

Gross domestic product is the monetary value of all final goods and services produced within the country in a specific period of time. It is a indicator of country´s economic health and growth rate.

It is calculated using three method:

a) Income.

b) Production.

c) Expenditure.

GDP help the investor to make important financial decisions. Growth in GDP is a sign of higher earning and higher stock prices. GDP is generally compared to previous quarter or financial year. There are two ways of calculating GDP:

a) Nominal GDP b) Real GDP.

a) Nominal GDP- It consider only current market prices without considering inflation or deflation.

b) Real GDP- It consider inflation rate or time value of money.

User Efaruk
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