Question

Why do we take into account only final goods and services for calculating GDP?​

Answer 1

Answer:

To avoid double-counting of goods and services.

Explanation:

Gross Domestic Product (GDP) only includes final goods and services so as to avoid double-counting of goods and services. There are many stages in the production of goods as well as rendering of services and incremental value is added at every stage. Hence, to avoid double-counting of incremental value, only final value of goods and services are included in GDP.

Furthermore, resale value of goods and services is not included in GDP as the original value of goods and services was included in the GDP of prior years.