1) In class, we noted that the most commonly accepted measure of economic perfor
ID: 2566429 • Letter: 1
Question
1) In class, we noted that the most commonly accepted measure of economic performance in the U.S. is GDP. What words do the initials GDP stand for? Just give me the three words, not a definition. 2) In class, we defined GDP as "Total Primary Income of all producers of goods and services". In turn, we defined Total Primary Income as: "Gross Domestic Output minus Intermediate Consumption". What is meant by the term, Domestic Output? That is, what is it that makes output Domestic? Answer briefly, but be clear about HOW Imports and Exports are treated in the determination of Domestic Output.Explanation / Answer
1) GDP =GROSS DOMESTIC PRODUCT
2) DOMESTIC OUPTUT is is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
Some of the goods and services that an economy makes are exported overseas and some of the products and services that are consumed within the country are imports from overseas. The GDP calculation also accounts for spending on exports and imports. The nation's total net exports, calculated as total exports minus total imports are taken into consideration.
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