Final answer:
Businesses contribute to gross domestic product (GDP) through the sale of goods and services, influencing the economic growth of a nation. GDP can be measured by what is produced or purchased in an economy and is adjusted for inflation to represent real terms.
Step-by-step explanation:
When businesses contribute to the GDP by engaging in market transactions that involve a buyer and a seller, they are participating in the economy's measure of the total dollar value of all goods and services produced within the country. The term GDP stands for gross domestic product, which is a way to represent the economic growth and productivity of a nation. In essence, it is the sum total of all economic activity within a country's borders, counting both the value of what is produced and what is purchased in the economy.
The concept referred to as "this" in the question is the GDP contribution through business activities. It is important to realize that when we discuss national income (Y), we are talking about the sum of all income earned by factors of production that contribute to the GDP, which includes income for workers, managers, investors, and owners of firms. GDP can also be measured in real terms, which means it is adjusted for inflation.
Therefore, when referring to businesses contributing to an economy through their products and services, they are indeed impacting economic growth by increasing the GDP.