Double counting (counting the same thing twice) in GDP accounting is avoided by not including a) illegal activities

Economics Dec 17, 2020

Double counting (counting the same thing twice) in GDP accounting is avoided by not including

a) illegal activities. b) net exports. c) intermediate goods. d) depreciation.

Expert Solution

Answer : Option "c" is the correct Answer

Double counting (counting the same thing twice) in GDP accounting is avoided by not Including intermediate goods.

Gross domestic product(GDP) is the total market value of all final goods and services produced within a country in a given time period. Market value means that valuing production according to the market price.

GDP counts only final (not the intermediate) goods and services because this method avoids double counting of goods going through several stages of production.

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