Question

Is the value of intermediate goods and services produced during the year included in Gross Domestic Product ​(GDP)? For​ example, is cotton used to produce a new shirt included in​ GDP?

Answer 1

Answer:

No, the value of intermediate goods is not included in GDP because that value is already included in the value of the final goods.

In other words, GDP is a measure that includes only the value of final goods and services produced in a given region, within a given period of time.

In this case, the value of the cotton is already added to the value of the new shirt, therefore, only the value of the shirt is included in GDP.