GDP includes only the value of final goods because the value of intermediate goods is already included in the prices of the final goods.

Question

Quizplus · Accepted Answer

GDP measures the value of all final goods and services produced in an economy within a given time period. Including the value of intermediate goods would result in double counting, as their value is already included in the prices of the final goods. Therefore, GDP only measures the value of the final goods and services produced.

GDP Includes Only the Value of Final Goods Because the Value