Answer to Question #84335 in Macroeconomics for Rohiaya Intan Hia

Question

Suppose that the firm that printed your Macroeconomics textbook bought the paper from XYZ paper mills. Was the purchase of the paper part of the GDP. If not, then how the value of paper was counted in the GDP.

Answer 1

If the firm that printed your Macroeconomics textbook bought the paper from XYZ paper mills, then the purchase of the paper is not the part of the GDP, because the value of paper was counted as intermediate goods and are added to the final price of goods sold, that is counted in the GDP.