Question

explain the term gdp why are only final goods and services counted in gdp

Answer 1

Only final goods and services are counted, to avoid multiple counting, since their prices covers the cost of all intermediate products and services that were used to produce the final output. Another way to calculate GDP is to measure the value added to each product or service at each stage of its production.

Answer 2

Answer:

While estimating the performance of a sector, only the value of final goods and services is used. This is for avoiding double counting. “The counting of the only the value of final goods and services is used. This is for avoiding double counting.

Explanation: