Answer:
Gross
Domestic Product (GDP) is the total sum of the value of the final goods and
services of the Primary, Secondary and Tertiary sectors of the economy of a country
produced during a year.
Examples of intermediate goods are wheat and flour, which are used for
making bread and biscuits.
Intermediate products should not be counted in the figure
of GDP. Biscuits and breads are the final products prepared using flour and
other ingredients like sugar, salt, oil, etc.
Only the final products are reaching the actual
consumers. The value of the intermediate products is already
counted in the final products and if this is again counted, it will lead to
double counting, causing an error in the estimation of GDP.
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