GDP measures: I. production. II. income earned during the production process. III. spending by...

Question:

GDP measures:

I. production.

II. income earned during the production process.

III. spending by consumers, businesses, governments, and foreigners.

A. Only I is correct.

B. Only II is correct.

C. Only III is correct.

D. Only I and II are correct.

E. I, II and III are correct.

Gross Domestic Product (GDP)

GDP is defined as the money value of all the final goods and services produced in a country. There are three methods to measure the GDP of a nation. They are: The product method, The expenditure method, and The income method.

Answer and Explanation:

Ans: I, II and III are correct.

Explanation:

The option I, II and III are three methods of measuring GDP.

Thus, option E is the correct answer.


Learn more about this topic:

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Gross Domestic Product: Using the Income and Expenditure Approaches

from Economics 102: Macroeconomics

Chapter 4 / Lesson 2
34K

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