The value of intermediate goods is not included in the calculation of GDP to avoid the problem of
A)depreciation.
B)inflation.
C)double counting.
D)transfer payments.

Question

Quizplus · Accepted Answer

Including the value of intermediate goods in the calculation of GDP would result in double counting, as the value of the final product that includes those intermediate goods has already been accounted for. This would lead to an overestimation of the value of economic output, which is why only the value of final goods and services is included in the calculation of GDP.

The Value of Intermediate Goods Is Not Included in the Calculation