GDP does NOT include intermediate goods because
A) intermediate goods are not valuable.
B) intermediate goods are not useful to consumers.
C) that would count the value of intermediate goods twice.
D) that would understate the true size of GDP.

Question

Quizplus · Accepted Answer

Including intermediate goods in GDP would count their value multiple times, as their value is already included in the final goods that they are used to produce. Therefore, they are not included in the calculation of GDP to prevent double counting.

GDP Does NOT Include Intermediate Goods Because