Question

why is the value of intermediate goods not taken for the calculation of GDP?

Answer 1

The value of intermidiate product not taken because as it process towards finishing the value of all extra goods and services get added on it.
Like if a biscuits have to given MRP
Then we don't calculate the price of its consitutant item like wheat sugar all the price is get added during the processing.

Answer 2

Intermediate goods and services ,which are used in the production of final goods and services ,are not included in GDP...


<<<<intermediate goods are the goods which are used in processing during manufacturing ..... .>>>>>


●●their value is not added in gdp as the wholesome value in itself is in the final goods which includes the intermediate goods cost too along with. ...


for example in the manufacturing of cotton cloth .....


we don't pay the price of cotton or for its dying or for any of the process we just pay the value of the final processed goods that is the cotton cloth itself .
which is in GDP earning
....


so under gdp only the value of the finished good, the cotton cloth is taken and not the raw Cotton....^'_^'




If any doubts ....
kindly ask....
thank you ☺✌❤