When estimating GDP using the income approach, aggregate income is adjusted by

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When estimating GDP using the income approach, indirect business taxes are added to aggregate income. This is because these taxes (such as sales tax) are collected by businesses on behalf of the government and do not form part of the income received by factors of production. Adding them back ensures that the measure of GDP reflects the total market value of all goods and services produced.

When Estimating GDP Using the Income Approach, Aggregate Income Is