Economists generally use gross domestic product to measure a nation's total output because it
A) equals the sales value of all transactions conducted during a period and, thus, can be easily calculated.
B) is the best available measure of the market value of all final goods and services produced during a period.
C) is unaffected by changes in the prices of products over time.
D) is a reliable indicator of the social progress of a nation over time.

Question

Quizplus · Accepted Answer

Gross domestic product is the market value of all final goods and services produced within a country in a given period of time. It is considered the best measure of a country's economic output because it captures the production of all goods and services consumed within a country, regardless of the nationality of the producers or the ownership of the production factors. It is also adjusted for inflation, which makes it a more reliable measure of economic growth over time.

Economists Generally Use Gross Domestic Product to Measure a Nation's