GDP A. is neither a stock or flow measure since it is measured in dollars. B....

GDP

A. is neither a stock or flow measure since it is measured in dollars.

B. is a stock measure since it represents the total market value.

C. could be either a stock or flow measure depending upon whether it is measured in dollars or units of production.

D. is a flow measure since it represents the value of a flow of production over a year's period.

Solutions

Expert Solution

Answer- D. is a flow measure since it represents the value of a flow of production over a year.

Explanation- Stock means the units measured at a point of time on the other hand flow refers to the units measured at a period of time. GDP (Gross domestic product) is flow variable because GDP refers to the total production of goods and services within the country over a year. GDP is calculated or measured at a period of time, it is not calculated at a point of time.

Rahul Sunny answered 2 years ago

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