Question

Alejandra is Calculating the nondurable goods value for 2017. She is calculating the value by using the quantity of each final nondurable goods produced in 2017, multiplied by the price at which the nondurable goods were sold in 2017. What type of calculation is Alejandra creating?

The nondurable goods nominal values.

The nondurable goods nominal and real values.

The nondurable goods real values

Gross Domestic Product (GDP) is designed to measure:

a nation’s total imports of final goods and services

a nation’s total consumption of final goods and services

a nation’s total production of final goods and services

Fred is reading through a news article about the nation’s GDP. The article mentions as part of its calculations, consumption expenditures. What is included in the GDP calculation of consumption

Exported goods

Purchase of new manufacturing facilities

Nondurable and durable goods

Answer 1

- the non durable goods nominal value

Since quantity and prices of the same year are used, Alegendra is calculating nominal value.

- a nation's total production of final goods and services.

GDP calculates the production of all the final goods and services produced in the country.

- non durable and durable goods

Consumption expenditure includes expenditure on durable and nondurable goods.