Question

what is the impact of double counting; a) false increase in national income b) decrease in national income c) no impact on national income d) none of these
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Answer 1

Answer:

No impact on national income

Explanation:

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Answer 2

The impact of double counting is a false increase in national income

• When the considerable value of certain commodities is counted more than once while calculating national income, the specific issue of double-counting occurs.
• It refers to counting the gross production cost at each production stage and including all the costs together to determine the product price.
• The economic impact of double-counting leads the total national product to be overvalued.