______ ≡ total of gross value added of all the firms in the economy.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. GDP.
- GDP is the total of the gross value added of all the firms and economic agents within an economy.
- It measures the economic performance and output of a country over a specific period, providing a comprehensive assessment of the overall economic activity, including production, consumption, and investment.
- GDP is a key indicator for assessing the size and health of an economy and is typically categorized into three different approaches: production or output approach, income approach, and expenditure approach.
- Each of these approaches measures GDP from a different perspective but ultimately leads to the same figure representing the total economic output of a country.