Gross domestic product (GDP) is

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) can be measured in three ways: the production (or output or value added) approach, which is the sum of the value of all final goods and services produced in a country during a year (A); the expenditure approach, which sums up all expenditures made for final goods and services at market prices, including consumption, investment, government spending, and net exports (exports minus imports) (B); and the income approach, which sums up all the incomes earned by households and businesses, including compensation of employees, rent, interest, profits, and taxes minus subsidies on production and imports (C). All three descriptions (A, B, C) are correct representations of GDP, making D the correct answer.

Gross Domestic Product (GDP) Is