Double counting in the national income accounts will be avoided if GDP is computed by totaling all:_____
A. sales of final output.
B. sales of final output and intermediate goods.
C. sales.
D. production costs.

GDP is an expression of a country's size of the economy. It is a measure of the total value of a country's output in a specific period. In calculating the GDP, economics will consider the total of final goods and services produced in an economy, multiply them by their prices and sum them up.

Double-counting describes a situation where some goods and services are counted more than once when computing GDP. Economists consider only the final output in calculating GDP. Not using intermediate goods avoids double-counting. Intermediate goods are not final products. They are used to produce more goods and services.

Double counting in the national income accounts will be avoided if GDP is computed by totaling all:_____ A. sales of final output. B. sales of final output and intermediate goods. C. sales. D. production costs.

Respuesta :

Otras preguntas

Double counting in the national income accounts will be avoided if GDP is computed by totaling all:_____
A. sales of final output.
B. sales of final output and intermediate goods.
C. sales.
D. production costs.