At a long-run macroeconomic equilibrium, real GDP is always equal ...

[captainjonesify]

At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP.
 
  Indicate whether the statement is true or false

Question 2

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
 
  What will be an ideal response?

[rekilledagain]

Answer to Question 1

TRUE

Answer to Question 2

We would double count if we counted directly the value of intermediate goods and services, because their value shows up in the value of the final goods and services in which they are a part.

[captainjonesify]

Gracias!

[ktidd]

Thanks for the timely response, appreciate it