How Are Intermediate Goods Accounted for When Calculating GDP

question 88

Multiple Choice

How are intermediate goods accounted for when calculating GDP?

• A) The value of all intermediate goods is included in GDP.
• B) The value of intermediate goods is included in GDP only if they were produced in the previous year.
• C) The value of intermediate goods is included in GDP only if they are purchased by firms rather than households.
• D) The value of intermediate goods is not included in GDP unless they are part of inventory.

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Definitions:

Mildred Parten

An American sociologist known for her work on the social development of children and her study on children's play.

Extrinsic

Originating from outside, not inherent or intrinsic; often used to describe external motivations or rewards.

Intrinsic

Referring to something that is inherent or naturally occurring from within an entity or individual, often in the context of motivation or value.

Neurotypical

Refers to individuals whose cognitive and brain function are considered typical for their age and not characterized by any significant neurological or psychiatric disorders.