GDP
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1a) What is GDP? Distinguish between real GDP and nominal GDP.What are the three ways of measuring GDP?
It is important to know about the economic activities of a nation. The measurement that tells us about the results of the economic activities over a period of time is known as the GDP.Taylor & Moosa (2002) defines Gross Domestic production or GDP as an indication of the value of goods and services that has been produced by a nation over a 12 month period. GDP growth is the main source by which we can tell whether the living standards of people are improving or not. In addition, it also influences the job availability and scarcity of jobs in the job market. A country tends to decrease poverty with a high per capita GDP (Taylor & Moosa (2002).
There is a tendency for the prices to rise and this is known as inflation...