In the economy when a steel producer sells steel to car producer it is regarded as ?
Correct answer: B. an intermediate good
- A. a final good
- B. an intermediate good
- C. an injection
- D. a leakage
Explanation
Steel sold to a car producer is used as an input in producing cars, so it is an intermediate good rather than a final good. Intermediate goods are excluded from GDP separately to avoid double counting.
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