To avoid double counting in calculating GDP,
A)net exports should be excluded.
B)the value of intermediate goods and services should be excluded.
C)the capital consumption allowance should be excluded.
D)business investment should be excluded.
E)government purchases should be excluded.

Question

Quizplus · Accepted Answer

Intermediate goods and services should be excluded in calculating GDP to avoid double counting. Double counting occurs when the value of a good or service is counted more than once in the calculation of GDP. Intermediate goods and services are those that are used in the production of other goods and services and are already included in the price of the final product. Excluding them helps to ensure that only the final goods and services are included in GDP.

To Avoid Double Counting in Calculating GDP