Question

GDP measures two things at once .The total income of everyone in the economy and the total expenditure (demand) of the economy’s output of goods and service. For an economy as a whole, income must equal expenditure.1. True2. False

Answer 1

Answer:

True

Explanation:

Gross Domestic Product (GDP) can be described as the monetary value of commodities produced within a country over a specified period of time.

For an economy as a whole, income must equal expenditure because there must a buyer and a seller for every transactions.

GDP is therefore a measures total expenditures on goods and services produced within a country, and the total income everyone got from the production of these goods and services.