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What is the meaning of ‘double counting’ in national income accounting and what does it lead to?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 21RQ: Name several forms of indexing in the private and public sector.

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Question

1. What is the meaning of ‘double counting’ in national income accounting and what does it lead to?

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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