If intermediate goods and services were included in GDP,
A) then GDP would be overstated.
B) then GDP would then have to be deﬂated for changes in the price level.
C) nominal GDP would exceed real GDP.
D) then GDP would be understated.

Question

Quizplus · Accepted Answer

Intermediate goods and services are already used in the production of final goods and services, so including them in GDP would result in double-counting. This would lead to an overstatement of GDP.

If Intermediate Goods and Services Were Included in GDP