How Is GDP Computed

question 145

Multiple Choice

How is GDP computed?

• A)Add up the quantities of all final goods and services.
• B)Add up the cost of producing final goods and services.
• C)Use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average.
• D)Add up the market values of all final goods and services produced within a country in a given period of time.

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Definitions:

Corporate Borrowing

The act of companies raising funds through the issuance of debt instruments, such as bonds or loans, to finance their operations or investments.

Financial Managers

Professionals responsible for the financial health of an organization, including developing strategies and plans for the long-term financial goals of their organization.

Market Value

The selling price of an asset in a competitive auction framework.

Owners' Equity

The ownership stake of shareholders in a company, reflected by the value of its assets minus its liabilities.