Why Do We Not Count the Value of Intermediate Goods

question 161

Essay

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

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Definitions:

Like Terms

Algebraic terms that have the same variable parts and powers.

Collect

Refers to gathering or bringing things together from multiple sources.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, which can be combined or simplified.

Operation Indicated

The process of performing the mathematical operation (such as addition, subtraction, multiplication, or division) as specified by the given problem.