When calculating gross domestic product (GDP),double counting can be avoided by:
A)taxing corporate income.
B)adding all income taxes to GDP.
C)calculating GDP using the income as well as the expenditure method.
D)adding the value of exports to GDP and subtracting the value of imports.
E)summing the value added at each stage of production.

Question

Quizplus · Accepted Answer

Summing the value added at each stage of production helps avoid double counting in GDP calculation. This involves only adding the value added to the final product at each stage of production, rather than the entire value of intermediate goods used in the process.

When Calculating Gross Domestic Product (GDP),double Counting Can Be Avoided