Intermediate goods are excluded from GDP because
A) their inclusion would involve double counting.
B) they represent goods that have never been purchased so they cannot be counted.
C) their inclusion would understate GDP.
D) the premise of the question is incorrect because intermediate goods are directly included in calculating GDP.
A
Economics
You might also like to view...
The federal funds rate is determined
A) by the Board of Governors. B) by the supply and demand for bank reserves. C) directly by households' and firms' demands for funds. D) by the federal government.
Economics
If the price of one good changes, what happens to the relative price and the slope of the household's budget line?
What will be an ideal response?
Economics