Answered

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Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.

Sagot :

Answer:

No

Explanation:

No, because the gross domestic product is determined by encompassing the final product. If the total sales are used to determine the GDP then the false value of GDP will come up because the problem of double counting will arise. Many firms sell their goods to other firms which is intermediate goods for the other firms.

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