GDP excludes the value of goods produced at home. many items are counted twice or more in the intermediate stages of production. more women are entering the labor force. firms often add less to inventories than they planned to. exports are subtracted from GDP but imports are not added.

Question

Shelby Abbott

Business

30 October, 23:01

GDP excludes the value of goods produced at home. many items are counted twice or more in the intermediate stages of production. more women are entering the labor force. firms often add less to inventories than they planned to. exports are subtracted from GDP but imports are not added.

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Tori Hubbard · Answer 1

False

Explanation:

GDP or gross domestic product value is a measure of the total value of all products and services produced within the boundaries of a country in a given time. It factors all products, regardless of who manufactures them, whether foreigners or locals, men or women. To avoid double-counting, GDP considers finished products only.

In calculating GDP, economists will deduct the cost of imports. The reason is that imports are produced in foreign countries. The value of GDP indicates whether the economy is expanding or contracting. An increase in GDP shows economic growth in the country. An increase in capital goods, human capital, labor force, technology, contribute to economic growth.