Gross domestic product measures two things at once:

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) measures the total income of everyone in the economy (including households, businesses, and government) and the total expenditure on the economy's output of goods and services (including consumption, investment, government spending, and net exports). In other words, it measures both the income generated by an economy and the spending that drives economic activity. Option A is incorrect because GDP does not measure savings directly. Option C is incorrect because GDP only measures the value of goods and services produced within a country, regardless of who they are produced for. Option D is incorrect because it doesn't reflect government spending, which is included in GDP.

Gross Domestic Product Measures Two Things at Once