Final answer:
Intermediate goods are goods used in producing other goods that are not counted in GDP calculations. They are excluded to avoid double counting.
Step-by-step explanation:
Intermediate goods are goods that go into producing other goods. They are not counted in the GDP calculations to avoid double counting. The GDP only counts the value of final goods and services that are sold for consumption, investment, government, and trade purposes. For example, if a car manufacturer produces a Ford truck, the value of the intermediate goods used in the production process, such as tires or engines, would not be included in the GDP. Only the value of the final Ford truck would be counted.