Given That GDP Is a Measure of What Is Produced

question 91

Essay

Given that GDP is a measure of what is produced in a country,explain how the expenditure approach can measure GDP.How are items produced,but not yet sold,accounted for in the expenditure approach?

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Definitions:

Past Consideration

A term in contract law meaning that an act done before a contract is made is not good consideration for the contract.

Sales Contract

A legal agreement between a buyer and a seller detailing the terms and conditions of a sale of goods or services.

Equitable Exchange

A transaction in which goods, services, or assets are traded based on fairness and balance in value.

Irrevocable Oral Promise

A spoken commitment that cannot be canceled or revoked, legally binding under specific circumstances.