How does the production of goods and services contribute to the GDP of a nation?

Production has no impact on GDP

Production increases GDP by creating more jobs

Production decreases GDP by increasing costs

Production contributes to GDP by adding value to the economy

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Answer and Solution

Answer

D. Production contributes to GDP by adding value to the economy

Solution:

The production of goods and services adds value to the economy, which in turn contributes to the GDP of a nation. As businesses produce more goods and services, they generate income, create employment opportunities, and drive economic growth, ultimately boosting the GDP.

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