Question

What are intermidiate goods? How do they help in calculating Gross Domestic Product?

Answer 1

Answer:

An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Intermediate goods—like salt—can also be finished products, since it is consumed directly by consumers and used by producers to manufacture other food products.

Intermediate goods are sold between industries for resale or the production of other goods. These goods are also called semi-finished products because they are used as inputs to become part of the finished product.

Explanation:

Answer 2

Answer:

intermediate goods are those goods which are used in process of making final goods

Explanation:

for e.g shirt is final product but cloth,cotten,yarn are the intermediate goods

there are three methods of measuring GDP

1) Expenditure method

2) Income method

3) Production method

In this method

production method = value of output( final product) - value of input(intermediate products)

this method avoid double counting.