Which of the Following Statements About GDP Is Correct

question 2

Multiple Choice

Which of the following statements about GDP is correct?

• A)GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force.
• B)Money continuously flows from households to government and then back to households,and GDP measures this flow of money.
• C)GDP is to a nation's economy as household income is to a household.
• D)All of the above are correct.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to consumers or other buyers.

Buyers

Individuals or entities that purchase goods or services for use or consumption.

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Price

The amount of money expected, required, or given in payment for something.