Question

Choose the multiple choice answers which, when strung together, create an accurate definition of GDP. The U.S. nominal gross domestic product is all final goods all goods and services all final goods and services all intermediate goods and services legally produced by residents of the United States within the territorial boundaries of the United States under the auspices of the U.S. government by entities owned by the citizens of the United States within a given presidential administration business cycle time period year and valued at the benefit the good or service provides to all of society. the price of the item adjusted for inflation. the prices at which the goods or services are sold. values set by the Congressional Budget Office.

Answer 1

Nominal GDP reflects the total market value of all final goods and services produced in a nation in a year, avoiding double counting and measured at market prices. Real GDP is adjusted for inflation to indicate true economic growth.

Step-by-step explanation:

The U.S. nominal gross domestic product (GDP) is the current value of all final goods and services produced within a nation in a year. It includes only final goods to avoid the mistake of double counting, where output is counted more than once as it moves through various stages of production. This calculation ensures the value of intermediate goods, like the tires on a truck, are not included separately from the final product, the truck itself. Hence, GDP is measured at the prices at which goods and services are sold, reflecting the market value of all final products and services within an economy. It’s essential to note that when referring to real GDP, the values are adjusted for inflation, providing an accurate picture of economic growth.