GDP is defined as the market value of all final goods and services produced in an economy in a given year. Group of answer choicesTrueFalse
Question
GDP is defined as the market value of all final goods and services produced in an economy in a given year.
Group of answer choices
- True
- False
Solution
Answer
True.
Gross Domestic Product (GDP) is indeed defined as the market value of all final goods and services produced within an economy over a specific time period, typically a year. This definition emphasizes the importance of both the value (market price) and the final goods and services, as opposed to intermediate goods that are used in the production of final products.
Additionally, GDP includes contributions from various sectors of the economy, such as agriculture, manufacturing, services, and government activities, providing a comprehensive snapshot of a nation’s economic activity. It serves as a crucial indicator of economic health and facilitates comparisons across different economies and time periods.
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