To avoid double counting when GDP is estimated, economists:

Use GDP deflator

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Calculate value added at each stage of production

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Use retail prices

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Use price of only intermediate goods

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Solution

The correct option is B
Calculate value added at each stage of production

To avoid double counting when GDP is estimated, economists calculate value added at each stage of production.

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Similar questions

Q. With regard to difference between GDP Deflator and CPI, which of the following statements is/are correct?

Answer using the codes given below

If Real GDP=600 and nominal GDP=660,find GDP deflator (price index).

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