Gross domestic product during a period is measured by adding
A) incomes received by households minus the sale of factor services supplied domestically.
B) factor payments made by domestic firms minus retained earnings and indirect business taxes.
C) expenditures on new final goods and services produced domestically.
D) the market value of all goods and services produced domestically and then subtracting net exports from that figure.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is the total value of all final goods and services produced within a country's borders during a given time period. This includes consumption (C), investment (I), government spending (G), and net exports (NX). Therefore, choice C - expenditures on new final goods and services produced domestically - best represents the calculation of GDP.

Gross Domestic Product During a Period Is Measured by Adding