Answered: GDP is equivalent to: Consumption…

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section7.2: The Expenditure Approach To Computing Gdp For A Real World Economy

Problem 2ST

See similar textbooks

Related questions

Question

GDP is equivalent to:

Consumption

Price Level

Inflation

Investment

Real Income

Expert Solution

Step 1

The GDP measures the total spending on final durable goods and non-durable goods, and services produced in the country during a particular period of time. The GDP also determines the total income that is generated by producing products and services. The consumption and the investment are the part of GDP as they measured spending on the products and services by households and investment on capital goods, machinery etc. The price level and inflation have an effect on the GDP but they are not equivalent to the GDP. So, the GDP is equivalent to real income.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Macroeconomics

Economics

ISBN:

9781337617390

Author:

Roger A. Arnold

Publisher:

Cengage Learning