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Definition
Gross domestic product can be defined in three different ways: as the sum
of labour incomes, net profits and depreciation; as the difference between
gross output and intermediate consumption; or as the sum of consumption
expenditures, fixed capital formation, changes in inventories and net
exports. PPPs are currency converters that equalise the purchasing power of
the different currencies. Gross Domestic product can be expressed in current
prices (nominal GDP) or constant prices (real GDP). Real GDP is more
appropriate for making comparison over time.
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