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What is Real GDP
To be able to make reasonable comparisons of GDP over time, we must adjust for inflation. For instance, if prices are doubled over 1 year then GDP would double although exactly the same services and goods are produced as the year before. To eliminate effect of inflation we divide GDP by a price index and we define real GDP as GDP divided by a price index.
Q. Production function and Growth? From the simple production function Y = f(L, K), we can classify three sources of growth: An increase in L. An increase in K.
Habelers theory of opportuniyu cost
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conditions for steady state in solow model.in what respects is golden rule different from steady state?
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