Which of the following statements regarding Gross Domestic Product is not true?
A)It is a stock variable.
B)It is measured for a particular time period,usually one year.
C)It is perhaps the most effective means of viewing the same economy over time.
D)It is a measure of the economy's performance.
E)It is a flow variable,not a stock variable.

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) is not a stock variable, it is a flow variable that measures the value of goods and services produced within a particular time period, usually one year. A stock variable refers to the value of an entity at a particular point in time, whereas a flow variable refers to the value of an entity over a period of time. Therefore, statement A which describes GDP as a stock variable is not true.

Which of the Following Statements Regarding Gross Domestic Product Is