Macroeconomics - GDP and CPI questions with correct answers

What does GDP Measure? correct answer Total Output of Goods and Services. Total Income of everyone in the economy. Total expenditure on the economy's output of goods and services. Measure of a society's economic well-being. For economy as a whole, income must equal expenditure. Definition of GDP correct answer Market value of all final goods and services produced within a country in a given period of time. GDP is Market Value correct answer Convert all kinds to one number. Exclude: housework, vegetables in backyard, etc GDP is Final correct answer Excludes intermediate goods Ex ice cream cone = $3, sugar used = .50. GDP increase by $3. Avoid double counting. GDP is produced currently correct answer Only affects GDP of current time period. Buying cars made in 2010 in 2014 do not affect 2014 GDP. GDP is within a country correct answer Regardless of nationality of producer. Ex Honda builds a factory in US - US GDP