The definition of gross domestic product is
A)the total value of all sales in the economy.
B)the total value of production in the domestic economy plus the production of domestic firms in foreign countries.
C)the total value of all sales of final and intermediate goods in the domestic economy.
D)the total of the money values of all final goods and services produced in the domestic economy within a specific time period.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is the monetary value of all final goods and services produced within a country's borders in a specific time period, usually a year. It includes the value of goods and services produced by all sectors of the economy, including the government, domestic firms, and foreign firms operating within the country. GDP is used as a measure of the economy's overall health and performance. Option A does not include intermediate goods, which are used in the production of final goods, so it is incorrect. Option B is incorrect because it includes the production of domestic firms in foreign countries, which is not part of the domestic economy. Option C is incorrect because it only includes sales, not production.

The Definition of Gross Domestic Product Is