Intermediate products:
A)produced domestically are not directly reflected in a nation's GDP.
B)produced domestically are reflected directly in a nation's GDP.
C)are imported retail products.
D)are goods that are purchased by the ultimate user.

Question

Intermediate products:
A)​produced domestically are not directly reflected in a nation's GDP.
B)​produced domestically are reflected directly in a nation's GDP.
C)​are imported retail products.
D)​are goods that are purchased by the ultimate user.

Quizplus · Accepted Answer

Intermediate products are goods that are used as inputs in the production process to create final products. They are not directly included in a nation's GDP because their value is already accounted for in the value of the final products they are used to create. In other words, including intermediate products in GDP would result in double-counting their value.

Intermediate Products