If we calculate GDP by adding the dollars of all goods that buyers pay,we make an error as a result of

Question

Quizplus · Accepted Answer

Adding the dollars of all goods that buyers pay may result in double counting of some goods, leading to an error in GDP calculation. For instance, if the value of intermediate goods is included in GDP, it may be counted multiple times, as the value of the final product that incorporates these intermediate goods. This would result in an overestimation of the GDP.

If We Calculate GDP by Adding the Dollars of All