Which of the following accurately describes GDP?
A)the sum of all currency and coins in circulation
B)the value of all final goods and services produced by a government within a given period
C)the value of all final goods and services produced anywhere in the world by a nation's firms within a given period
D)the value of all final goods and services produced domestically within a given period

Question

Quizplus · Accepted Answer

GDP stands for Gross Domestic Product, which is the total value of all final goods and services produced domestically (within a country's borders) within a given period (usually a year). Therefore, option D is the most accurate description of GDP. Option A describes the money supply, option B describes government spending, and option C describes a country's Gross National Product (GNP) which includes the production of a country's firms both domestically and internationally.

Which of the Following Accurately Describes GDP