How do economists calculate gross domestic product (GDP)? 1 point

A - By adding up all the taxes collected by federal and state governments during one year

B- By adding up all of the products consumed within a nation during one year

C- By adding up all the goods and services produced within a country during one year

D- By adding up all the jobs that were added to a country's economy during one year

I think it's B ..

Nope.

What does your text say?

Oh it's c

Yes, C.

The correct answer is C - By adding up all the goods and services produced within a country during one year.

To calculate GDP, economists use an expenditure approach, which involves adding up the total spending on goods and services in an economy. This is done using the following formula:

GDP = Consumption + Investment + Government Spending + (Exports - Imports)

1. Consumption refers to the total spending by households on goods and services.
2. Investment includes spending by businesses on capital goods (such as machinery and equipment) and residential investment (such as housing).
3. Government spending includes all the expenditures by the government on goods and services.
4. Exports indicate the value of goods and services produced domestically and sold to other countries.
5. Imports represent the value of goods and services produced abroad and purchased domestically.

By summing up these components, economists can determine the total value of goods and services produced within a country's borders in a given year, which constitutes the country's GDP.