Which of the following is true of the gross domestic product (GDP)of a nation?
A)It can be measured by the stock of consumer goods in a nation at a particular point in time.
B)It can be measured by the stock of capital goods in a nation at a particular point in time.
C)It can be measured either by calculating the total spending on production or the total income from that production.
D)It is the sum of total spending on production and total income from that production.
E)It can be measured from the stock of wealth in the nation.

Question

Quizplus · Accepted Answer

GDP can be measured either by calculating the total spending on production (i.e. the sum of consumption, investment, government spending, and net exports) or the total income from that production (i.e. wages, profits, and other income received by households and businesses). Option A, B, D and E are incorrect as they do not accurately describe the measurement of GDP.

Which of the Following Is True of the Gross Domestic