When computing GDP using the production approach, one must count only the value added by each business, as opposed to the total value of output produced by each business, in order to avoid double counting.

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This is because GDP is calculated as the sum of all value added at each stage of production in the economy, rather than simply adding up the total value of output produced by each business. This avoids counting the same value multiple times and provides a more accurate representation of the overall economic activity.

When Computing GDP Using the Production Approach, One Must Count