suppose a factory added $5,000 worth of output this year. incidentally, the waste from this factory caused $1,000 worth of loss to the neighboring waterways. as a result, gross domestic product will suppose a factory added $5,000 worth of output this year. incidentally, the waste from this factory caused $1,000 worth of loss to the neighboring waterways. as a result, gross domestic product will increase by $5,000. decrease by $4,000. increase by $1,000. increase by $4,000.

The term "Gross Domestic Product," or GDP, refers to the total monetary worth of all finished goods and services produced (and marketed) within a nation within a specific time period (typically 1 year). Purpose. The most often used indicator of economic activity is the GDP.

How is the GDP determined?

The total amount of money spent during a specific time period by firms, consumers, and the government can be used to compute GDP. It can also be determined by adding up the total amount of money that each economic participant has received. The figure is an estimate of "nominal GDP" under both scenarios.

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