Which of the following are important aspects of calculating GDP?

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Add all the finished goods and services.

Adding goods and services produced in one year.

Both (1) and (2)

All of the above.

answer is C.

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Detailed Solution

Add all the finished goods and services and adding goods and services produced in one year are important aspects of calculating GDP. To calculate gross domestic product, we need to calculate the value of finished goods and services produced in one year. Intermediate goods and services are not considered while measuring gross domestic product because the final goods already include the cost of intermediate goods. If intermediate goods value is counted, it will lead to double counting. GDP helps to learn how big the economy is. In India, gross domestic product is measured by the central ministry of government by adding the finished goods from all three sectors.

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