ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer spending
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Investment spending
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Not included
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Net Exports
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Detailed explanation-1: -The GDP of an economy can be measured by the total dollar value of what is purchased in the economy or by the total dollar value of what is produced. Understanding how to measure GDP is important for analyzing connections in the macro economy and for thinking about macroeconomic policy tools.
Detailed explanation-2: -GDP can be measured in three different ways: the value added approach, the income approach (how much is earned as income on resources used to make stuff), and the expenditures approach (how much is spent on stuff).
Detailed explanation-3: -Economists calculate real GDP by then adjusting the resulting nominal GDP to account for inflation by applying a GDP deflator or a price index, which measures inflation since the base year. In this case, the base year is a year separate from the one under study, but whose prices will be used to measure it.
Detailed explanation-4: -How are final goods and services valued when measuring nominal GDP? add together the value of different goods that have different prices.