Gross domestic product constitutes the
A) total quantitative output in an economy.
B) current market value of all goods and services produced in a given year.
C) total spending in an economy.
D) total monetary transactions in an economy.
E) current market value of all final goods and services produced in a given year within a country's borders.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is the current market value of all final goods and services produced within a country's borders in a given year. It specifically refers to the output produced within a country's borders, which is why answer choices A, C, and D are incorrect. GDP measures the value of goods and services that are sold in markets, which is why intermediate goods and services are excluded, leaving only final goods and services, making E the correct option.

Gross Domestic Product Constitutes the