Purchases of lumber, such as an eight-foot length of two-inch by four-inch boards, are always considered intermediate goods and those transactions are not counted in GDP.

Question

Quizplus · Accepted Answer

Purchases of lumber, like any other intermediate goods, are not included in the calculation of GDP if they are being used as inputs in the production of final goods. However, if the lumber is being purchased for personal consumption, such as for a home renovation project, then it would be included in the calculation of GDP as a final good.

Purchases of Lumber, Such as an Eight-Foot Length of Two-Inch