If in the process of calculating GDP,the market value of all intermediate goods is added to the market value of all final goods,this would
A) overstate the actual value of GDP.
B) produce the correct value of GDP.
C) understate the actual value of GDP.
D) avoid the possible error of double counting.

Question

Quizplus · Accepted Answer

Including the market value of intermediate goods in GDP calculation would lead to double counting since the value of these intermediate goods is already included in the market value of the final goods. This would overstate the actual value of GDP. Therefore, intermediate goods should not be included in the GDP calculation to avoid this error.

If in the Process of Calculating GDP,the Market Value of All