Intermediate goods and services are not included in gross domestic product (gdp) because?

- It is assumed that the value of production is already included in the final price of the end good .

Explanation:

Intermediate goods are described as the semi-finished goods also known as producer goods that are used for production of a final and finished product to be sold directly to the consumer. These are the goods that are primarily sold and bought for the purpose of resale or reproduce final goods from them to sell it for the final consumption of the consumers.

As per the question, the value of these goods are not included in GDP as it is presumed that the value of these goods have already been included in the value of the final product. This helps avoid the double-counting of the production value of these goods and calculate the accurate Gross Domestic Product.

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