Double counting in the value added approach to GDP statistics is avoided by
A)correct accounting of the values of exports and imports
B)choosing only one method to calculate GDP--either the income or the expenditures method
C)counting only the value added at each stage of a good's production process
D)counting the value of final and intermediate goods and services
E)subtracting the total value of intermediate goods and services from the total value of final goods and services

Question

Quizplus · Accepted Answer

Double counting is avoided in the value added approach to GDP statistics by counting only the value added at each stage of a good's production process. This means that the value added by each stage is only counted once, not multiple times as the good moves through the production process.

Double Counting in the Value Added Approach to GDP Statistics