ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
true
|
|
|
false
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Output gap is hard to measure because we can’t observe potential output. There is no uniform way to measure potential output. Potential output relies heavily on relationships that are intertwined in the economy.
Detailed explanation-2: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
Detailed explanation-3: -Which of the following is true regarding the measurement of total output? It can be measured from either total expenditure or total income. In the circular flow diagram, the sum of all final goods and services produced by firms in a given period of time is measured by the: production method.
Detailed explanation-4: -Economists use many different methods to measure how fast the economy is growing. The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything-goods and services-produced in our economy.