Suppose the total monetary value of all ﬁnal goods and services produced in a particular country in a year is $500 billion and the total monetary value of ﬁnal goods and services sold is $450 billion.
We can conclude that
A) GDP that year is $450 billion.
B) NDP is $450 billion.
C) GDP that year is $500 billion.
D) inventories fell by $50 billion.

Question

Quizplus · Accepted Answer

GDP measures the total monetary value of all final goods and services produced within a country in a specific time period, which in this case is $500 billion, regardless of whether those goods and services were sold within that period.

Suppose the Total Monetary Value of All ﬁNal Goods and Services