If you add up all the transactions in an economy, do you arrive at Gross Domestic Product, Gross National Product, or something

Question

Lunna [17]

2 years ago

13

If you add up all the transactions in an economy, do you arrive at Gross Domestic Product, Gross National Product, or something

else? Explain your answer.

Social Studies

1 answer:

aniked [119] · Answer 1 · 2023-10-07T15:11:10+03:00

If you add up all the transactions in an economy, you arrive at GNP because intermediate goods are included. GDP because intermediate goods are excluded. This is further explained below.

Generally, The Gross Domestic Product (GDP) is a monetary measure of all final products and services produced in a nation over a certain time frame that is purchased by the ultimate consumer.

In conclusion, Because of the inclusion of intermediary items, GNP may be calculated by simply adding up all economic transactions. GDP as we don't count intermediary products.