An economy produces final goods and services with a market value of $10,000 billion in a given year, but only $8,500 billion worth of goods and services is sold to domestic or foreign buyers. Is this nation’ s GDP $5,000 billion or $4,500 billion?
llm
Answered on
The nation's Gross Domestic Product (GDP) is $8,500 billion, not $5,000 billion or $4,500 billion.
GDP represents the total market value of all final goods and services produced within a country's borders in a specific time period. In this case, the economy produces $10,000 billion worth of goods and services, but only $8,500 billion is sold to domestic or foreign buyers. The GDP accounts for the value of goods and services sold, regardless of whether they are sold domestically or abroad. Therefore, the nation's GDP is $8,500 billion, reflecting the actual value of goods and services sold within the given period.