Question

How does the Bureau of Economic Analysis of the U.S. Department of Commerce measure GDP?

A) By adding the quantities produced of every good and service in the economy.
B) By adding the value in dollar terms of all of the final goods and services produced domestically.
C) By ascribing a historic value to all of the quantities produced in the economy.
D) In some cases, by adding quantities, and in others by adding the value of goods and services produced.

Answer 1

The Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce measures GDP by estimating its value based on the quantities of goods and services produced and their prices.

Step-by-step explanation:

Economists measure GDP by taking the quantities of all goods and services produced, multiplying them by their prices, and summing the total. The Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce is responsible for estimating GDP. They piece together estimates from a variety of sources to calculate the value of the output of all goods and services produced within the country in a year.