In double-entry GDP accounting,
A)the value of output produced must equal the value of resource payments generated in producing that output
B)government is not counted because most of government spending is for transfer payments
C)payments to resources must equal the value of goods sold to households
D)inventories are counted twice,once as investment and once as output
E)intermediate goods are counted twice,once as a type of output themselves and once as part of final output

Question

Quizplus · Accepted Answer

Double-entry GDP accounting requires that the value of output produced must equal the value of resource payments generated in producing that output, ensuring that all production is accounted for and that there is no double-counting or exclusion of any economic activity.

In Double-Entry GDP Accounting