Use the following to answer questions:
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model. What is GDP?
A) $200
B) $700
C) $1,000
D) $1,080

Question

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model. What is GDP?
A) $200 
B) $700 
C) $1,000 
D) $1,080

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is the total value of goods and services produced within a country's borders in a given time period. In the expanded circular flow model, GDP is represented by the total income of households ($400) plus the total income of firms ($600) which equals $1,000.

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