Which of the following equations best represents gross domestic product (GDP)

Which of the following equations best represents gross domestic product (GDP):

Select one:

a.  income + savings

b. prices - spending

c. prices - income

d. prices x output

Correct Answer: d. prices x output

The correct equation that represents Gross Domestic Product (GDP) is:

d. prices x output

GDP is calculated by multiplying the prices (or value) of goods and services produced in a country by the total output (quantity) of those goods and services. This is also known as the production approach to calculating GDP. The other options (a, b, and c) do not accurately represent how GDP is calculated.