GDP counts the dollar value of only final goods and services because:
A) we can measure only the value of final goods and services, not the value of inputs.
B) if we counted the value of all goods, we would count inputs, such as the value of steel in a new automobile, more than once.
C) intermediate goods reduce GDP.
D) only final goods and services matter for the economy.

Question

Quizplus · Accepted Answer

Counting the value of all goods would lead to double counting or multiple counting of the inputs used, like the value of steel in a new automobile, which is already counted when the automobile is sold. To avoid this, GDP counts only the final goods and services that are sold to the end-users.

GDP Counts the Dollar Value of Only Final Goods and Services