How are intermediate goods accounted for when calculating GDP?
A) The value of all intermediate goods is included in GDP.
B) The value of intermediate goods is included in GDP only if they were produced in the previous year.
C) The value of intermediate goods is included in GDP only if they are purchased by firms rather than households.
D) The value of intermediate goods is not included in GDP unless they are part of inventory.

Question

Quizplus · Accepted Answer

The value of intermediate goods is not included in GDP to avoid double counting, except when they are part of inventory, as this indicates they have not been used in the production process yet and thus do not contribute to the double counting issue.

How Are Intermediate Goods Accounted for When Calculating GDP