If intermediate goods and services were included in GDP,then:
A)GDP would not have to be adjusted for net exports
B)GNI would exceed GDP
C)GDP would be overstated
D)GDP would be understated
E)GDP would have to be adjusted for depreciation

Question

Quizplus · Accepted Answer

Intermediate goods and services are not included in GDP because they are already accounted for in the final price of a good or service. If they were included, it would be double-counting and result in an overstatement of GDP. Therefore, including intermediate goods and services in GDP would lead to an overstatement.

If Intermediate Goods and Services Were Included in GDP,then