Why Doesn't GDP Include Intermediate Goods

question 16

Multiple Choice

Why doesn't GDP include intermediate goods?

• A) Intermediate goods are not sold to consumers.
• B) Intermediate goods are never valued at full retail price, leading to an undervaluation of GDP.
• C) The value of intermediate goods is included in the final product, and accounting for the value twice would overestimate GDP.
• D) All of these are reasons why GDP does not include intermediate goods.

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