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What Are the Two Basic Ways of Deriving Real GDP

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Essay

What are the two basic ways of deriving real GDP from nominal GDP?


Definitions:

Employment Agency

An organization that matches employers with job seekers.

Weekly

Once per week.

Biweekly Gross Pay

The total amount of earnings paid every two weeks before any deductions are applied.

Annual Salary

The total earnings of an individual from their job before taxes and other deductions, calculated on a yearly basis.

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