how do we count the various goods and services and know the total production in each sector ?
1) the value of final goods and services is calculated and then added up to know the total production in each sector.
2) only the value of final goods is calculated because the value of final goods includes the value of all intermediategoods that are used in making the finalgoods.for example:-
the value of table (suppose rupees 2000) includes the value of wood (rupees 1000) and polish (rupees 500).so the value ofwood and polish is not counted seperately.