Asked by Bailey Goodman on Jun 29, 2024
Verified
Which of the following is the best indicator of the performance of the national economy?
A) The budget deficit of the federal government
B) The stock of capital goods (machinery) in the nation
C) The nation's stock of money
D) The balance of trade with other nations
E) The value of the final goods and services produced in the nation
National Economy
The economic activities and output of a nation, considering the total of all goods and services produced, income generated, and the overall economic health.
Budget Deficit
The financial situation where a government's expenditures exceed its revenues within a specified period, leading to borrowing or debt accumulation.
Capital Goods
Long-lasting goods that are used in the production of other goods and services and are not consumed in the immediate process of production.
- Recognize how GDP reflects the economic performance of a country.
Verified Answer
PD
Prerak DoshiJul 03, 2024
Final Answer :
E
Explanation :
The value of the final goods and services produced in the nation, also known as Gross Domestic Product (GDP), is considered the best indicator of the performance of the national economy. It measures the total output of goods and services produced within a country's borders and provides a snapshot of the size and health of the economy. Other indicators, such as the budget deficit, stock of capital goods, nation's stock of money, and balance of trade can be important but may not provide a comprehensive picture of the economy's performance.
Learning Objectives
- Recognize how GDP reflects the economic performance of a country.