Gross Domestic Product is computed by using
A) base-year prices.
B) wholesale prices.
C) previous-year prices.
D) current-year prices.

Question

Quizplus · Accepted Answer

GDP is computed using current-year prices to reflect the current value of goods and services produced within a particular time period. This measurement takes into account price changes and reflects the true growth of the economy. Using base-year prices, wholesale prices, or previous-year prices would not accurately reflect the current value of goods and services produced and would not provide an accurate picture of the economy's growth.

Gross Domestic Product Is Computed by Using