Question

what is GDP? Why is only final goods counted in gdp?

Answer 1

Explanation:

GDP refers to Gross Domestic Product. It is the sum total of the total goods and services produced in a year within a domestic tertiary.

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 counted twice, 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.

Answer 2

Answer:

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 counted twice, 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.