Question

Which of the following statements about GDP is correct? a. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. b. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. c. GDP is generally regarded as the best single measure of a society’s economic well-being. d. All of the above are correct.

Answer 1

Answer:

d. All of the above are correct.

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP can be calculated using the expenditure or income approach.

Using the expenditure approach, GDP = Consumption spending + Investment spending + Government Spending + Net Export

GDP calculated using either the income and expenditure approach always arrives at the same figure.

Real GDP per capita is used to measure the level of wellbeing in the society.

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