Saved Bookmarks
| 1. |
Final goods conceded in calculation of GDP. Why? |
|
Answer» GDP only includesfinal products— goods for sale, rather thanintermediate goodsthat are used to make final products. So a raw steak sold to a customer at a supermarket is part of GDP, but a raw steak sold to a restaurant isn’t — only the cooked steak the restaurant sells to its customers counts. This is to avoid double-counting. That doesn’t mean intermediate goods don’t count. It means that each intermediate step in a supply chain counts the value added at each step. |
|