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.

D

Economics

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Economists usually assume that all consumers have the same tastes and preferences

a. True b. False

Economics

What is the distinction between a movement along the consumption function and a shift of the consumption function?

a. A movement along the consumption function is caused by a change in income and a shift of the consumption function is caused by a nonincome determinant. b. A movement along the consumption function is caused by a change in interest rates and a shift of the consumption function is caused by an income determinant. c. A movement along the consumption function is caused by a change in net wealth and a shift of the consumption function is caused by an income determinant. d. There is not distinction between the two, they are the same movement.

Economics