Intermediate Goods Are Goods That Are Used Up Entirely in the Production

question 233

Multiple Choice

Intermediate goods are goods that are used up entirely in the production of final goods. As such, intermediate goods

• A) are excluded in calculating Gross Domestic Product (GDP) because they are not valuable.
• B) are excluded in calculating Gross Domestic Product (GDP) because to do so would be to double count them.
• C) make up only a small portion of Gross Domestic Product (GDP).
• D) are included in Gross Domestic Product (GDP) only if produced within the borders of the United States.

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