Adding the market value of all ﬁnal and intermediate goods and services in an economy in a given year would result in
A) the calculation of GDP for that year.
B) the calculation of NDP for that year.
C) an amount less than GDP for that year.
D) an amount greater than GDP for that year.

Question

Quizplus · Accepted Answer

Adding both final and intermediate goods and services results in double counting, which would lead to an amount greater than the GDP, as GDP only counts the market value of final goods and services to avoid this issue.

Adding the Market Value of All ﬁNal and Intermediate Goods