Suppose national accounting was done by adding up the market values of all outputs of all firms.This approach would

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Quizplus · Accepted Answer

Adding up the market values of all outputs of all firms would lead to double-counting of intermediate goods, thus overestimating the value of production in the economy. Gross Domestic Product (GDP) is calculated by summing the value of final goods and services only, to avoid this issue.

Suppose National Accounting Was Done by Adding Up the Market