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(a) (˘ń) ˇ°Real gross domestic product (Real GDP) is a measure of the value of all the gods and service newly produced in a country during some period of time, adjusted for inflation ˇ±(Taylor & Moosa 2002, p99). The period can be a year or a quarter. The word real means the measure of production is adjusted for the general increase in price over time. The general increase in price is named inflation. Figure 2.1 illustrates the real GDP in United Kingdom: Figure 2.1 From the figure, in 1990 the real GDP of United Kingdom reached its peak-417 billions of pounds, which means the highest point in real GDP before a recession.
Approximate Word count = 442 Approximate Pages = 1.8 (250 words per page double spaced)
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