Question

In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy? A) The country is embarking on large public works projects. B) The country has recently joined a new trade organization. C) The country relies on agriculture for most of its export revenues. D) The country has suffered a disaster and is receiving financial aid from overseas.

PLEASE HELP ASAP

Answer 1

The correct answer would be letter "D". GDP stands for Gross Domestic Product, meaning it accounts for the market value of final good and services produced within the country's borders. With that said, financial aid does not fit into that description and doesn't impact directly in said production of final goods and services, therefore it cannot be accounted for in the GDP of a country.