Question

What is GDP? Who calculates it? What precautions to be taken while calculating it

Answer 1

Answer:

It is the calculation of values of all final goods and services within a year. Precaution in Calculating GDP: There is a precaution one has to take. Not every good (or service) that is produced and sold needs to be counted.

India's Data Collection Process

India's Central Statistic Office calculates the nation's gross domestic product (GDP). India's GDP is calculated with two different methods, one based on economic activity (at factor cost), and the second on expenditure (at market prices).

(i) Only final expenditure is to be taken into account to avoid error of double counting. (ii) Expenditure on second hand goods is not to be included. (iii) Expenditure on shares and bonds is not to be included. (iv) Expenditure on transfer payments (called transfer expenditure) is not to be included.

$\huge\red{please \: mark \: me \: as \: brainliest}$

Answer 2

Answer:

The anual calculation of values of all goods and services is called as GDP.

Explanation:

Precautions:-

(i) Only final expenditure is to be taken into account to avoid error of double counting. (ii) Expenditure on second hand goods is not to be included. (iii) Expenditure on shares and bonds is not to be included. (iv) Expenditure on transfer payments (called transfer expenditure) is not to be included

HOPE IT IS HELPFUL TO YOU......