Gross domestic product (GDP) is the value of goods and services produced in a country annually.

It can best be described as measuring an economy’s

A) total product.
B) total demand.
C) total input.
D) total output.

D) total output.

Explanation:

Economists use the GDP value to gauge economic growth in a country. In calculating the GDP, economists consider all finished goods and services in the country regardless of who manufactured or consumed them. An increase in the GDP value communicates economic progress.

GDP, therefore, represents the economic output of a country. It takes into account all products manufactured in a country.  Total input refers to the factors of production used in manufacturing other goods and services. Total demand is the aggregate of all goods and services that consumers in a country are able and willing to purchase at different prices in a period. Demand includes imports, which are not considered in GDP calculations.

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