Of the many ways to measure GDP, the one used in the short-run aggregate demand model is
A) total spending on goods and services.
B) total production of goods and services.
C) total income received by workers and firms.
D) total production net of depreciation on the factors of production.
E) all of the above; they are all equally useful in constructing a macro model.

Question

Quizplus · Accepted Answer

The short-run aggregate demand model primarily focuses on total spending on goods and services as a measure of GDP, reflecting the economy's demand side.

Of the Many Ways to Measure GDP, the One Used