If we counted the value of autoworkers' salaries, wheels, tires, steel, body parts, and final car sales in calculating GDP, then we would be

Question

Quizplus · Accepted Answer

Counting all the components (salaries, parts, and final sales) separately and then summing them up would lead to double counting. GDP measures the market value of all final goods and services produced in a country in a given period, and including intermediate goods (like wheels, tires, steel, body parts) along with the final product (cars) would inflate the actual value of GDP.

If We Counted the Value of Autoworkers' Salaries, Wheels, Tires