Intermediate goods are not included in GDP because:
A) certain goods that are used in the production of a final good would be counted twice.
B) the value of goods bought by producers to make something else would be counted twice.
C) the value of goods used by firms to make the goods they sell is included in the firm's product; accounting for the value twice would overestimate GDP.
D) All of these statements are true

Question

Quizplus · Accepted Answer

Intermediate goods are excluded from GDP to prevent double counting, as their value is already included in the final goods.

Intermediate Goods Are Not Included in GDP Because