GDP Is

question 107

Multiple Choice

GDP is

• A)the sum of all monetary transactions which occur in the economy in a given year.
• B)the sum of all monetary transactions involving final goods and services which occur in the economy in a given year.
• C)the amount of production which occurs when the economy is operating at full employment.
• D)None of the choices are true of GDP.

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Definitions:

Commodity Grade

A classification standard that specifies the quality and condition of commodities to ensure they meet minimum standards for trading.

Basis

The difference between the spot price of an asset and the futures price of the same asset.

Long Hedger

An investor who purchases futures contracts or the underlying asset to protect against potential price increases.

Short Hedger

An investor who enters into contracts to protect against potential losses from declining prices in the assets they hold.