The Value Added Method of Calculating GDP Means

question 307

Multiple Choice

The value added method of calculating GDP means

• A) adding up the market values of all intermediate goods.
• B) calculating the percentage changes in the GDP between two years.
• C) adding up the incomes of all businesses in a given year.
• D) adding up the difference between the sale price and the value of intermediate goods of each product at every stage of production.

---

Definitions:

Interest

The cost of borrowing money or the return on investment for lending money, determined as a percentage of the principal amount.

Desired Amount

The specific sum of money or financial goal an individual or entity aims to achieve.

Monthly Rate

The interest rate or other fees assessed on a monthly basis, often used in loans and financial agreements.

Student Loan

A loan offered to students which is used to pay off educational expenses and is repayable after graduation, typically with interest.