In the value added approach to calculating GDP,counting both the intermediate good and the final product would understate the contribution to GDP.

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In the value added approach to calculating GDP, counting both the intermediate good and the final product would actually overstate the contribution to GDP, because it would count the value of the intermediate good twice. The value added approach avoids this by only counting the additional value created at each stage of production.

In the Value Added Approach to Calculating GDP,counting Both the Intermediate