Gross output (GO)
A) and GDP are equivalent measures of the ﬁnal output of an economy.
B) sums together the dollar value of economic activity at every stage of production.
C) measures all economic activity leading up to but excluding ﬁnal output.
D) always equals an amount smaller than GDP.

Question

Quizplus · Accepted Answer

Gross output (GO) is a measure of the total economic activity in an economy, not just the final output like GDP. GO sums together the dollar value of economic activity at every stage of production, from raw materials to the finished product. Therefore, GO is a broader measure of economic activity than GDP, and it is not always smaller than GDP.

Gross Output (GO)