explain the term gdp why are only final goods and services counted in gdp
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Gross domestic product(GDP) is a monetary measure of the market value of all the final goodsand services produced in a period (quarterly or yearly) of time. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons. Nominal GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between different nations.
Only final goods are counted in measuring GDP because the goods used in making the final good are included in the final good, so it would be countedtwice, otherwise. The value of used furniture that is bought and sold is not counted because the used furniture would have been included in GDP the year before
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Gross domestic product(GDP) is a monetary measure of the market value of all the final goodsand services produced in a period (quarterly or yearly) of time. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons. Nominal GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between different nations.
Only final goods are counted in measuring GDP because the goods used in making the final good are included in the final good, so it would be countedtwice, otherwise. The value of used furniture that is bought and sold is not counted because the used furniture would have been included in GDP the year before
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MARK AS BRAINLIEST ✌✌
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