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Why Is It Necessary to Adjust Changes in Nominal Gross

question 44

Essay

Why is it necessary to adjust changes in nominal gross domestic product (GDP)for changes in prices and changes in population (i.e.,compute per capita real GDP)before using it as a measure of economic growth?


Definitions:

Parallelism

The condition of being parallel; in engineering, the degree to which parts or surfaces are aligned or parallel to each other.

Angularity

Angularity is a measure of deviation or conformity to a specified angle, often critical in part and assembly to ensure proper alignment and function.

Geometric Tolerancing

The specification of allowable variance in the geometric form and location of features on manufactured parts, allowing for precise and repeatable assembly.

Orientation

The arrangement or positioning of a part, component, or structure in relation to its surroundings.

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