Double counting occurs when both intermediate and final goods are included in the GDP.

Question

Quizplus · Accepted Answer

Double counting occurs when both intermediate and final goods are included in the GDP. This happens when the value of an intermediate good is counted both as a cost of production and as a part of the final good that is sold to consumers. To avoid double counting, only the value of final goods and services should be included in GDP.

Double Counting Occurs When Both Intermediate and Final Goods Are