How is GDP calculated?
A) by adding up the production of all goods and services in the economy
B) by adding up the cost of all goods and services in the economy
C) by adding up the quantity of all goods and services in the economy
D) by measuring the economy's price level during a particular year
E) by subtracting the value of all goods and services produced by the government and the value of those produced by the private sector

Question

Quizplus · Accepted Answer

GDP is calculated by adding up the production of all goods and services in the economy, including consumption, investment, government spending, and net exports. This is referred to as the expenditure approach to calculating GDP.

How Is GDP Calculated