Gross domestic product (GDP) figures tend to understate the quantity of goods and services available because:

A) GDP excludes the value of goods produced at home.
B) many items are counted twice or more in the intermediate stages of production.
C) more women are entering the labor force.
D) firms often add less to inventories than they planned to.
E) exports are subtracted from GDP but imports are not added.

Intermediate Stages

Phases or steps in a process or a production chain that occur between the initial and final stages.

Gross Domestic Product

The total monetary value of all finished goods and services produced within a country's borders in a specific time period, an important indicator of economic health.

Inventories

The stocks of goods, raw materials, and other assets that a company holds for the purpose of future sale or production.