What data are needed to calculate GDP?
A) only the quantities of goods and services produced
B) only the prices of goods and services produced
C) both quantities and prices of goods and services produced
D) only the costs of producing goods and services

Question

Quizplus · Accepted Answer

GDP is calculated as the total value of all final goods and services produced within a country's borders in a given time period. Thus, both the quantities and prices of goods and services produced are needed to calculate GDP. The costs of production are not sufficient for GDP calculation, as they only reflect expenses incurred by producers and do not account for the value of goods and services produced.

What Data Are Needed to Calculate GDP