Question

which of the following is true regarding gross domestic product (gdp)? 1 point intermediate goods are not counted because gdp does not include imports from foreign countries household production, like home auto repair, is counted in gdp transfer payments are not included in gdp because government expenditures are not counted gdp includes the purchase and sale of all goods and services in a country in one year gdp, adjusted for inflation, measures economic growth over time the major difference between real and nominal gdp is that real gdp 1 point excludes government debt excludes exports is adjusted for price - level changes using a price index measures only the value of intermediate goods and services that are consumed measures the prices of a market basket of goods purchased by a typical consumer

Explanation:

For the first question:

• Intermediate goods are excluded to avoid double-counting, not due to imports.
• Household production (unpaid, non-market) is not counted in GDP.
• Transfer payments are excluded because they are not payments for produced goods/services; government expenditures on goods/services are counted in GDP.
• GDP only counts final goods/services, not all goods/services (it excludes intermediate goods and used goods resales).
• Real GDP (GDP adjusted for inflation) tracks actual economic growth by removing price level changes.

For the second question:

• Nominal GDP uses current prices, while real GDP is adjusted for inflation (price-level changes) using a price index (like the GDP deflator) to reflect true quantity changes. The other options are incorrect: real GDP does not exclude government debt or exports, it counts final goods/services, and it is not a measure of consumer prices (that is the CPI).

Answer:

First question: GDP, adjusted for inflation, measures economic growth over time
Second question: Is adjusted for price-level changes using a price index