How do economists calculate gross domestic product (GDP)?
(1 point)
Responses
by adding up all the taxes collected by federal and state governments during one year
by adding up all the taxes collected by federal and state governments during one year
by adding up all of the products consumed within a nation during one year
by adding up all of the products consumed within a nation during one year
by adding up all the goods and services produced within a country during one year
by adding up all the goods and services produced within a country during one year
by adding up all the jobs that were added to a country’s economy during one year
Gross Domestic Product (GDP) is calculated:
by adding up all the goods and services produced within a country during one year
GDP represents the total monetary value of all final goods and services produced within the borders of a country in a specific time period, usually a year or a quarter. It encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade (exports are added, imports are subtracted). Taxes related to these activities factor into this calculation, but they are not added up independently to calculate GDP.