Gross domestic product calculations count only final goods and services because
A) one cannot calculate the quantities of intermediate goods produced.
B) it is difficult to measure the prices of intermediate goods produced.
C) these are the only goods and services that are produced in an economy.
D) counting all goods and services would lead to double-counting of many activities.

Question

Quizplus · Accepted Answer

Counting all goods and services would lead to double-counting of many activities, as intermediate goods and services are already included in the final goods and services. Therefore, GDP calculations only count final goods and services to avoid counting the same activity more than once.

Gross Domestic Product Calculations Count Only Final Goods and Services