Neither Intermediate Goods nor Used Goods Are Included in GDP

question 346

Essay

Neither intermediate goods nor used goods are included in GDP. Explain why these expenditures are not included in GDP.

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Definitions:

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of its stakeholders.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Ethical Misconduct

Behavior by an individual or organization that violates accepted moral standards or principles.