GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case.

Name: GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case.
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Question

​GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case.

Quizplus · Accepted Answer

GDP only includes final goods and services to avoid double counting, and since the sliced bread is used by the sandwich shop to make sandwiches (a final product), its purchase is not directly included in GDP calculations.

​GDP Excludes the Purchases of Sliced Bread by a Sandwich

GDP Excludes the Purchases of Sliced Bread by a Sandwich