Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and $8,000 worth of napkins each month. Are these purchases included in the calculation of gross domestic product?
Economists calculate GDP as the value of all final goods and services produced in one year. The ribs and napkins are intermediate goods whose value is included in the value of the final product dinners sold. Counting purchases of ribs and napkins by the restaurant in GDP would result in double counting.
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