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    Intermediate vs. Final Goods

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    Are the following outputs considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year? For each answer, just say intermediate good, final good, or neither.
    a. New tires put on a new Corvette at Big O Tire store
    b. The net sales price of a home built in 1990 when it is resold in 1997
    c. The commission earned by a stock broker on the sale of stock
    d. The net price that is paid for 1000 shares of stock in Dell.

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    Solution Preview

    a. New tires put on a new Corvette at Big O Tire store
    This is a final good. The tires are being purchased separately from the car.

    b. The ...

    Solution Summary

    The solution determines whether goods are intermediate or final.