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Double counting is a problem in computing national income...

Double counting is a problem in computing national income when using the

A.

Expenditure method

B.

Income method

C.

Output method

D.

Value-added method

Correct answer is D

The value-added method calculates national income by adding value to a product at every stage of its production.

In measuring the National Income, the value of only final goods and services is to be included. However, the problem of double counting arises when value of intermediate goods is also included along with the value of final goods.