To calculate GDP using the value-added method, one would add up ...

[drink]

To calculate GDP using the value-added method, one would add up
 
  A) the market value of intermediate goods and services produced during a particular period.
  B) the value added by each firm involved in the production of final goods and services.
  C) the market value of final goods and services produced during a particular period.
  D) only the value added by the underground economy.

Question 2

Refer to Figure 18-1. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from
 
  A) C to B. B) D to A. C) D to C. D) B to A.

[mcarey591]

Answer to Question 1

B

Answer to Question 2

C

[drink]

Excellent

[FergA]

TYSM