To estimate GDP you add the value of all the goods and services
produced, both final and intermediate goods. Is this procedure
correct? Why or why not? Explain.
To estimate GDP this might not be the correct procedure. When
calculating GDP we are not supposed to take intermediate goods into
the count of Gross domestic production. The market worth of all final
products and services generated in the economy is measured by GDP.
These items are not included in the computation since they would be
recorded twice. If somebody who prepares the final product buys raw
material from the market and after the final if it is counted again then it
will be tallied twice in the counting and making it overstated or
overestimated in final figures. If only final products are taken into
account then all the materials are counted as one.