Double counting

Double counting,

Definition of Double counting:

  1. A term used to describe the problematic situation that occurs when the costs of intermediate goods used by a business to produce a finished good are included in the computation of a nations gross domestic product. Since the final price of a good already includes the value of all the intermediate goods used to produce it, including the price of intermediate goods when calculating gross domestic product would involve double counting.

Meaning of Double counting & Double counting Definition