What is Gross Domestic Product Why is the value of intermediate goods not included to calculate the Gross Domestic Product
Dear Student,
Gross domestic product( GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered as an indicator of a country's standard of living.
It will become a hectic process to calculate the value and add it at each stage of the production and consumption ,to save time ,cost and energy the GDP takes the value of the all final goods and services on which the intermediate cost is already added.
Regards
Jaya
Gross domestic product( GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered as an indicator of a country's standard of living.
It will become a hectic process to calculate the value and add it at each stage of the production and consumption ,to save time ,cost and energy the GDP takes the value of the all final goods and services on which the intermediate cost is already added.
Regards
Jaya