Which of the following is NOT included in the calculation of a country's GDP?
A) consumer spending on final goods and services
B) government spending on the military
C) spending on new machinery by firms
D) spending on intermediate goods by firms

Question

Quizplus · Accepted Answer

Spending on intermediate goods by firms is not included in the calculation of a country's GDP because it would lead to double counting. GDP measures the market value of all final goods and services produced within a country in a given period, and intermediate goods are used in the production of final goods, so their value is already included in the final goods' value.

Which of the Following Is NOT Included in the Calculation