The gross domestic product (GDP)excludes:
A)the increase in inventories during a given period.
B)the expenditures by government for newly produced goods and services during a given period.
C)the value of intermediate goods produced in an economy during a given period.
D)the value of final output during a given period.
E)household expenditure on durable goods.

Question

Quizplus · Accepted Answer

GDP measures the market value of all final goods and services produced within a country in a given period. It excludes the value of intermediate goods to avoid double counting, as these goods are used in the production of final goods, whose values are included in GDP.

The Gross Domestic Product (GDP)excludes