Intermediate goods are not counted in GDP because:
A)to do so would result in double counting.
B)these goods are not produced for the market.
C)these goods are produced in the underground economy.
D)these goods involve financial transactions.

Question

Quizplus · Accepted Answer

Intermediate goods are inputs used in the production process to create final goods and services, and their value is already included in the final product's price. If intermediate goods were counted in GDP, it would result in double counting, as the value of these goods would be included twice in the national accounts. Therefore, intermediate goods are not included in GDP calculations.

Intermediate Goods Are Not Counted in GDP Because