Please explain in detail the listed questions to give me a full understanding.
1. Why do economists include only the final goods in measuring GDP for a particular year? Why dont they include the value of stocks and bonds sold? Why dont they include thr vale of used furniture bought and sold?
Only final goods of an economy are included in GDP in order to avoid double counting. If intermediary goods were counted, the question would arise as to whether an economy was really growing, or if instead more intermediate steps were being used to make goods. Stocks and bonds are financial instruments that exist only on paper. They can be created by such things as simply by making a private company public, and do not represent any real productive capability. If used goods were counted, it ...
Why only final goods and services are used in calculation of GDP