The Value of Intermediate Goods Is Not Counted in GDP

question 94

Multiple Choice

The value of intermediate goods is not counted in GDP

• A)to avoid counting their value twice and overstating the value of GDP.
• B)because they are sold in factor markets.
• C)because they are not consumed in the current year.
• D)because intermediate goods reduce society's welfare.
• E)because it is difficult to accurately record all the intermediate goods produced in an economy as large as Canada.

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