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What is Real GDP in Macroeconomics?
Unlike the nominal or simple GDP, Real GDP accounts for the changes in the price level of goods and services, thereby providing a more accurate figure. In short, while calculating it, you don’t have to consider the mean price or the approximate price—you can very well take in the changes in the price level too!
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Real GDP in Macroeconomics helps you to take the entire minor to major changes in the price level and calculate accurately the GDP of an economy. Hence, people with the same specialization are much more in demand than the rest.
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