Under double deflation, which two items are deflated separately to arrive at real Gross Value Added?
- A.Output and intermediate consumption
- B.Exports and imports
- C.Wages and profits
- D.Government spending and private consumption
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Double deflation is a production-side technique: gross output is deflated with one price index and intermediate consumption with another, and real Gross Value Added is what remains after subtracting the second from the first.
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