In Order to Measure Gross Domestic Product,we Can Follow

question 1

Multiple Choice

In order to measure gross domestic product,we can follow

• A)only one approach: the circular flow approach.
• B)only one approach: the national accounts approach.
• C)two approaches: the expenditure approach and the income approach.
• D)three approaches: the expenditure approach,the income approach,and the production approach.
• E)three approaches: the expenditure approach,the income approach,and the market-based approach.

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Definitions:

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price.

Price

The amount of money expected, required, or given in exchange for an item or service in a market.

Normal Good

A good for which demand increases as the income of consumers increases, and vice versa.

Income

Revenue generated on a regular basis from labor or investments.