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1- List the components of GDP and give an example of each. Why do economists use real GDP rather than nominal GDP to gauge economic well-being? Why is it desirable for a country to have a large DGP? Give an example of something that would raise GDP and yet undesirable.

2- Describe problems that make the consumer price index an imperfect measure of the cost of living. Explain the meaning of nominal interest rate and real interest rate. How are they related?

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