Economists Generally Use Gross Domestic Product to Measure a Nation's

question 86

Multiple Choice

Economists generally use gross domestic product to measure a nation's total output because it

• A) equals the sales value of all transactions conducted during a period and, thus, can be easily calculated.
• B) is the best available measure of the market value of all final goods and services produced during a period.
• C) is unaffected by changes in the prices of products over time.
• D) is a reliable indicator of the social progress of a nation over time.

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Definitions:

Restrictions

Limitations or constraints placed on activities, behaviors, or movements.

Fiscal Policy

Government policies related to taxation and spending to influence the economy.

Treasury Department

A sector of the government responsible for managing government revenue, including producing coins and bills, issuing Treasury bonds, and other financial instruments.

Administration

The management and organization of all the activities of a government or institutional body.