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:

Histogram

A graphical representation that displays data by way of bars to show the frequency of numerical data intervals.

Symmetric

Having attributes that are mirrored equally across a central axis or around a central point.

Skewed

A description of a distribution that is not symmetrical, with a majority of data points lying on one side of the mean.

Width

The measurement of the extent of something from side to side, often used in reference to dimensions of objects.