An economy's equals its .
A)consumption; income
B)consumption; expenditure on goods and services
C)expenditure on goods; expenditures on services
D)income; expenditure on goods and services

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is the total value of all goods and services produced within an economy in a given time period, typically a year. It is calculated by adding up all expenditures on final goods and services within that economy, which includes consumption expenditure, investment expenditure, government expenditure, and net exports. Income earned by households is also included in GDP as it signifies the production of goods and services, hence D is the correct option as it represents the relationship between income and expenditure on goods and services.

An Economy's Equals Its