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The Value of Intermediate Goods Is Not Counted in GDP

Question 21

Multiple Choice

The value of intermediate goods is not counted in GDP


A) to avoid counting their value twice and overstating the value of GDP.
B) because they are sold in factor markets.
C) because they are not consumed in the current year.
D) because intermediate goods reduce society's welfare.
E) because it is difficult to accurately record all the intermediate goods produced in an economy as large as Canada.

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