By summing the dollar value of all monetary transactions in the economy, we would
A) determine the market value of all resources used in the production process.
B) obtain a sum substantially larger than GDP.
C) determine value added for the economy.
D) measure GDP.

Question

Quizplus · Accepted Answer

Summing all monetary transactions would include multiple counts of the same dollar as it moves through the economy, resulting in a total much larger than the GDP, which only counts final goods and services to avoid double counting.

By Summing the Dollar Value of All Monetary Transactions in the Economy