What is the importance of not including intermediate goods when calculating GDP?
A) Avoiding single product counting
B) Restricting GDP to important goods
C) Maintaining a constant consumer price index definition
D) Avoiding double counting
E) Restricting GDP to goods that can be priced

Question

Quizplus · Accepted Answer

Including intermediate goods in GDP calculation would result in double counting, as they would already be included in the final goods and services produced. To avoid this, intermediate goods are excluded, and only final goods and services that are sold to final consumers are counted.

What Is the Importance of Not Including Intermediate Goods When