A firm purchases $400,000 worth of raw materials and pays wages and salaries of $300,000 and dividends of $100,000 . If the firm sells its output for $1 million, the firm's value added to GDP is

According to your text, which of the following countries has experienced the highest annual per capita Gross Domestic Product (GDP) growth rate since 1970?

A) China B) Japan C) Germany D) United States

Gross domestic product (GDP)

a. always increases over time b. increases only if prices increase because the goods and services are measured in current prices c. increases only if output of good and services increase d. increases only if either prices increase or output increases, but not a combination of both e. increases with either an increase in prices or an increase in output, or a combination of both