GDP Includes the Value of Final Goods, and Not Intermediate

question 42

Multiple Choice

GDP includes the value of final goods, and not intermediate goods, because:

• A)the value of intermediate goods is already included in the value of final goods
• B)the value of intermediate goods is too difficult to measure
• C)the value of intermediate goods is measured by GNP
• D)the value of intermediate goods depends on the number of separate production processes

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Definitions:

Inflation Rates

An indicator of how quickly the overall price level for goods and services increases, leading to a decline in purchasing power.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, used as a key indicator of labor market health.

Natural Rate

often references the natural rate of unemployment, which is the level of unemployment consistent with sustaining a stable rate of inflation.

Short-run Phillips Curve

A curve depicting the inverse relationship between the rate of inflation and the unemployment rate in the short term, suggesting a trade-off between the two.