What does the gross domestic product (GDP) measure?

Question

Quizplus · Accepted Answer

The gross domestic product (GDP) measures a country's economic output and activity. It is the total value of goods and services produced in a country within a given time period, usually a year. It includes consumption by households, investment by businesses, government spending, and net exports. GDP is often used as an indicator of a country's economic health and is used to compare the economic performance of different countries.

Option A is incorrect because GDP does not measure the difference between imported and exported goods but it includes net exports in its calculation.

Option B is incorrect because GDP is not related to the budget surplus or deficit of a country.

Option D is incorrect because GDP measures the value of all goods and services produced in a country, and not just manufactured goods.

Option E is incorrect because GDP measures the total value of goods and services produced in a country, not just those consumed within the country.

What Does the Gross Domestic Product (GDP) Measure