Question

Explain with the help of an example how the final goods are used for calculating gdp of the country and intermediate goods are not used

Answer 1

Final goods are the end result and final consumption they would not be proceed more so they are calculated in GDP as GDP includes all end results in it whereas intermediate goods are those which will be proceed more and are not calculated in GDP .

Eg:
Biscuit is the end product whereas wheat flour , sugar etc are intermediate goods .
So, biscuits prices will be added in GDP .

Hope it helps