In calculating GDP, economists use the value of final goods and services because

Question

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Using only the value of final goods and services ensures that there is no double counting of the same product at different stages of production. Intermediate goods are already incorporated into the final price of the good or service, so including them separately would lead to an overestimation of GDP. Final goods can also be exported, but this is not the primary reason for using their value in GDP calculations. Depreciation is also taken into account separately through calculations of net domestic product (NDP).

In Calculating GDP, Economists Use the Value of Final Goods