Of the Many Ways to Measure GDP, the One Used

question 9

Multiple Choice

Of the many ways to measure GDP, the one used in the short-run aggregate demand model is

• A) total spending on goods and services.
• B) total production of goods and services.
• C) total income received by workers and firms.
• D) total production net of depreciation on the factors of production.
• E) all of the above; they are all equally useful in constructing a macro model.

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Definitions:

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or across international borders.

Different Goods

Variety of products or items that satisfy different needs and wants or provide various forms of utility to consumers.

Double Coincidence

A situation in bartering where two parties each hold an item the other wants, enabling them to exchange these items directly without the need for money.

Monetary Exchange

The process by which goods and services are bought and sold using money as a medium of exchange.