Asked by Spencer Hamer- on Jun 06, 2024

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The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders, used as a comprehensive measure of economic activity.

Tires Purchased

The acquisition of tires, highlighting consumer or business buying behavior in the automotive market segment.

Calculating

The process of using mathematical techniques and operations to determine quantities, values, or results, often involving numbers and equations.

  • Acquire knowledge on the contrasting features and definitions of nominal GDP versus real GDP.
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ZK
Zybrea KnightJun 07, 2024
Final Answer :
True
Explanation :
Tires purchased by a company to use on its cars are considered intermediate goods, which are already included in the final price of the cars. Therefore, they are not counted separately in the calculation of GDP to avoid double-counting.