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

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If we add the dollars of all goods that buyers pay, we might end up counting some goods twice. For example, if a farmer produces wheat and sells it to a bakery, the value of the wheat is counted as part of the GDP. If the bakery then uses that wheat to make bread, which is sold to a grocery store, the value of the wheat is again counted as part of the GDP when the bread is sold. This is called double counting and can lead to an overestimation of the true value of the GDP.

If We Calculate GDP by Adding the Dollars of All