When GDP is calculated as the final demand for goods and services by consumers, businesses, governments, and foreigners, then GDP is measured by
A)the sum of all value added.
B)the sum of all productive resource inputs.
C)the sum of all factor payments.
D)the sum of final goods and services.

Question

Quizplus · Accepted Answer

When GDP is calculated as the final demand for goods and services by consumers, businesses, governments, and foreigners, it is measured by the sum of final goods and services. This means that only the value of goods and services that are consumed or used for final production are included in the calculation of GDP, and intermediate goods and services are not.

When GDP Is Calculated as the Final Demand for Goods