How are intermediate goods treated in GDP computations?
A) They are included so we can get a measure of sales.
B) They are excluded because their value is already counted in the value of final goods.
C) They are excluded because there are too many to accurately measure.
D) They are included because they are final goods for the firm producing them.

Question

Quizplus · Accepted Answer

Intermediate goods are excluded from GDP computations because their value is already counted in the value of final goods. Including their value would result in double counting and an overestimation of the true value of production in the economy.

How Are Intermediate Goods Treated in GDP Computations