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Value Added Method for Measuring GDP
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Value Added Method for Measuring GDP
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11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Value Added Method for Measuring GDP / Problem 2
Problem 2
What would be the impact on GDP if intermediate goods were included in the calculation?
A
GDP would be underestimated, leading to conservative economic analysis.
B
GDP would be overestimated, leading to inaccurate economic analysis.
C
GDP would remain unchanged, as intermediate goods do not affect the calculation.
D
GDP would be more accurate, reflecting all economic activities.
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