By not counting the value of intermediate goods when calculating GDP, you avoid
A) deficit spending.
B) double counting.
C) black-market accounting.
D) year-to-date calculations.

Question

Quizplus · Accepted Answer

Not counting the value of intermediate goods when calculating GDP is done to avoid double counting. Intermediate goods are already included in the final price of the finished goods, so counting them again would result in an overestimate of the GDP. This is why they are not included in the calculation. The other options listed (deficit spending, black-market accounting, year-to-date calculations) are not related to the issue of counting intermediate goods in GDP calculation.

By Not Counting the Value of Intermediate Goods When Calculating