Economy, asked by pdjacob3886, 1 year ago

Why are only final goods and services counted in the calculation of gdp?

Answers

Answered by MacintoshTavish
6
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.

Hope it helps ya' mate.
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