A bakery uses flour to produce bread.When calculating GDP, we include _______ because when we add the value of the flour to the value of the loaf of bread to calculate GDP, the result is _______.

Question

Quizplus · Accepted Answer

When calculating GDP, we only include the final goods to avoid double counting. The value of the flour is already embedded in the price of the bread, so including both would result in double counting.

A Bakery Uses Flour to Produce Bread