Double counting in GDP accounting:
A) refers to the fact that accountants check their figures twice.
B) refers to the inclusion of both intermediate goods and final goods in GDP.
C) is the method of using both income and expenditures in measuring GDP.
D) is the method of calculating the GDP by including the net incomes received by residents of a nation living abroad.

Question

Quizplus · Accepted Answer

Double counting in GDP accounting refers to the inclusion of both intermediate goods (goods used in production that are not sold to final consumers, such as steel used to make cars) and final goods (goods sold directly to final consumers, such as the cars themselves) in GDP. To avoid double counting, only the value of final goods is included in GDP.

Double Counting in GDP Accounting