Double counting counting the same thing twice) in GDP accounting is avoided by not including

Question

Quizplus · Accepted Answer

Intermediate goods refer to goods that are used as inputs in the production of final goods. They are not included in GDP to avoid double counting since they are already incorporated in the value of final goods. Illegal activities are not included in GDP since they are not legally produced. Depreciation is accounted for in GDP by subtracting capital consumption from the gross domestic product. Net exports represent the difference between exports and imports and are included in the GDP calculation.

Double Counting Counting the Same Thing Twice) in GDP Accounting