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GDP measures the
market value of all final goods and services produced within a
country in a given period of time. GDP measures
continuous flow of money from households to firms and then back to
households in the whole economy.
The trend of the GDP growth rates is the key
indicator of macroeconomic fluctuations , which
include expansion, boom, contraction, and recession. Thus the real
GDP is used to explain how well the overall economy of a country is
performing whereas GDP per capita is used as a natural measure of
the economic well-being of the average individual in a given
Limitation can be flactuation of price goods Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 19th, 2015
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