One way of solving the problem of double counting is by
Answer Details
Double counting occurs when a single transaction is counted multiple times in the calculation of GDP. One way to solve this problem is by using the value-added method. This method adds up the value added at each stage of production rather than simply adding up the total sales. By adding up the value added at each stage, the final GDP figure does not include any intermediate goods or services that were used in the production process. This helps to avoid double counting and provides a more accurate measure of the economy's total output.