The _____ of an economy is its total annual output as measured by its final purchase price.
A) balance of payment
B) gross domestic product
C) cash reserve ratio
D) net national income

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is a measure of the total value of goods and services produced within a country's borders in a given period of time. It is calculated by adding up all of the final goods and services purchased in the economy. The balance of payment (A) is a record of all transactions between one country and the rest of the world. The cash reserve ratio (C) is the proportion of deposits that banks are required to hold in reserve. Net national income (D) is the total income earned by a country's residents, minus any payments made to foreign entities.

The _____ of an Economy Is Its Total Annual Output