Economists generally use GDP to measure a nation's total output because it is
A) equal to the sales value of all transactions conducted during a period and thus can be easily calculated.
B) the best available measure of the true costs of producing consumer goods.
C) unaffected by changes in the prices of products over time.
D) a relatively reliable measure of the value of all final product goods and services produced during a specific time period.

Question

Quizplus · Accepted Answer

GDP is considered a reliable measure of the value of final goods and services produced within a specific period. It takes into account the market value of all goods and services produced within the country, regardless of whether they are sold domestically or internationally. While changes in product prices can impact GDP, it is considered relatively unaffected by inflation or changes in input costs.

Economists Generally Use GDP to Measure a Nation's Total Output