(a) Describe value added method.
(b) What is double counting ? Name the methods to avoid it.

Explanation

(a) Value added method measures the market value of a final goods and services, produced by each producing enterprise, within the domestic territory of the country.
`GVA_(MP)=underset((i))(GVO_(MP))-underset((ii))(IC)`
Here, (i) Value of output refers to the market value of goods produced in domestic territory during a period of one year. (ii) Intermediate consumption refers to the value of non-factor inputs, which are used up in the process of production.
(b) Double counting refers to including value of same products more than once.
Two ways to Avoid Double counting :
`**" "`Use value of final output,
`**" "`Use value added of each firm.