Which of the Following Is Included in Gross Domestic Product

question 83

Multiple Choice

Which of the following is included in gross domestic product (GDP) ?

• A)A U.S. company purchasing stock of a foreign company
• B)The value of an accountant's services
• C)A U.S. company purchasing stock of another U.S. company
• D)The purchase of a used Ford by a U.S. citizen
• E)A social security payment received by a retired teacher

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Definitions:

Money Supply Growth

Money supply growth refers to the rate at which the quantity of money available in an economy increases over a specific period.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another's, not adjusted for inflation differences between the two countries.

Real Exchange Rate

The price of a country's goods and services in comparison to those of another country, adjusted for exchange rate changes.

Real Exchange Rate

The rate at which the currency of one country can be exchanged for that of another, adjusted for inflation, which determines the purchasing power of one currency relative to another.