Which of the following statements regarding the gross domestic product is true?
A)It is useful in comparing the overall performance of different economies at the same time.
B)It measures aggregate income in an economy over a period of ten years.
C)It measures the value of all goods and services produced in the world during a given period.
D)It is a measure of an economy's price level during a particular year.
E)It records the cumulative value of all goods and services produced by domestically owned factors of production.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is useful in comparing the overall performance of different economies at the same time. It is a measure of the total output of goods and services produced within an economy in a given period of time, usually a year. It is not a measure of aggregate income over a period of ten years or the value of all goods and services produced in the world. Additionally, while GDP does take into account the value of goods and services produced by domestically owned factors of production, it does not measure an economy's price level during a particular year.

Which of the Following Statements Regarding the Gross Domestic Product