GDP Counts the Dollar Value of Only Final Goods and Services

question 90

Multiple Choice

GDP counts the dollar value of only final goods and services because:

• A) we can measure only the value of final goods and services, not the value of inputs.
• B) if we counted the value of all goods, we would count inputs, such as the value of steel in a new automobile, more than once.
• C) intermediate goods reduce GDP.
• D) only final goods and services matter for the economy.

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Definitions:

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