Per Capita Income, National Income and Contribution to GDP
how are final...
Question
how are final goods different from intermediate goods?why only value of final goods is included in the estimation of gdp?
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Solution
Intermediate goods are used up in producing final goods and services. The finished good made up of all the intermediatery goods are the final products..
The value of final goods is only used in the calculation of the GDP because it already includes the value of all the intermediate goods that are used in making the final good.