The GDP includes
A) the value of all intermediate goods and services.
B) the value of all final goods and services.
C) the value of both intermediate and final goods and services.
D) the value of all transactions.

Question

Quizplus · Accepted Answer

The GDP only includes the value of final goods and services that are produced within a country's borders during a specific time period. Intermediate goods, which are used to produce final goods, are not counted in GDP to avoid double counting. The value of transactions that do not involve production, such as stock market trades or the sale of used goods, are also not included in GDP.

The GDP Includes