Answer:
if intermediate goods were counted, then multiple counting would occur. #economic investment and should not be counted as production of final goods and services
this value was already counted in GDP in some previous year.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products because it would result in double counting
6. Goods produced in previous years. This is because it has already been included in previous years GDP and adding it would result in double counting