We Measure Gross Domestic Product by Multiplying the Quantities of Goods

question 85

Multiple Choice

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to

• A) express the values of products in a common unit of measurement.
• B) correct for inflation.
• C) directly compare the output of one economy to that of another.
• D) calculate the total number of units of goods produced in an economy.

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Definitions:

Enrolment

The process of registering or entering into a program, course, or institution.

Compounded Semiannually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest on interest.

Strip Bond

A type of bond where both the principal and regular coupon payments have been separated and are sold individually.

Compounded Quarterly

A method where interest is calculated and added to the principal every three months.