The modification of Gross Domestic Product (GDP) to reflect indirect taxes and subsidies is called the:
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The factor cost adjustment is utilized to allow consistent comparisons of the components of the GDP measure (expenditure, income, and output) as well as to isolate the effect of certain governmental policies upon productivity.
For which of the following is gross domestic product (GDP) adjusted to calculate GDP at factor cost?
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Factor cost adjustments to GDP include indirect taxes (such as a value-added tax) and subsidies.
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