In computing GDP, it is essential to

Question

Quizplus · Accepted Answer

Double counting occurs when the value of a good or service is included more than once in the calculation of GDP. To avoid double counting, only the final value of a good or service should be included in the calculation. Including government transfer payments or tax revenues would not accurately reflect the total value of goods and services produced in an economy. Counting intermediate products directly would also lead to double counting since those products are already included in the final product.

In Computing GDP, It Is Essential to