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Macroeconomics encompasses the study of an economy as a whole, with GDP being a critical metric. GDP, short for Gross Domestic Product, measures the monetary or
market value of all the finished goods and services produced within a country's borders in a specific time period. It reflects the economic performance and health. The circular flow model illustrates how money and goods flow through an economy. GDP and government revenue are intricately linked, as tax revenues generated from economic activities contribute significantly to public finances.
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