62.2k views
5 votes
Identify the correct and incorrect statements about gross domestic product (GDP).

a. It is a traditional measure of a country's economic growth.
b. It measures the strength of a country's education system and life expectancy.
c. It measures the value of a country's economic output.
d. It usually goes up in recessions and down during good economic times.

User Onessa
by
7.5k points

1 Answer

3 votes

Final answer:

GDP is a traditional indicator of a country's economic health, measuring the total value of economic output. It does not measure social indicators and typically decreases during recessions, contrary to the incorrect statement provided. Option number a and c is correct.

Step-by-step explanation:

Among the statements about gross domestic product (GDP), let's identify which are correct and which are incorrect:

It is a traditional measure of a country's economic growth. Correct - GDP is a measure used to compare a country's productivity and performance and is frequently used to gauge economic growth.

It measures the strength of a country's education system and life expectancy. Incorrect - GDP does not measure social indicators like education quality or life expectancy directly.

It measures the value of a country's economic output. Correct - GDP measures the total value of all goods and services produced within a country in a year.

It usually goes up in recessions and down during good economic times. Incorrect - Typically, GDP falls during recessions due to reduced economic activity and rises during periods of economic expansion.

User Sindi
by
7.5k points