Question

To compute gdp the quantity of each final good or service produce must first be weighted by

Answer 1

The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). ... It transforms the money-value measure, nominal GDP, into an index for quantity of total output.

For an economy as a whole, incomemust equal expenditure because: – Every transaction has a buyer and a seller. – Every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) is a measure of the income and expenditures of an economy.