Economics · National Income Accounting
In the value added method of calculating GDP, double counting occurs when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Final goods are included in the estimation
- 2Capital goods are excluded from the calculation
- 3Value of intermediate goods is added separately along with final goods✓
- 4Depreciation is deducted twice from the gross value
Correct answer
Value of intermediate goods is added separately along with final goods
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