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contrary to what most people think the

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gross domestic product or GDP does not

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tell you how much money your government

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made during a certain year instead it

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tells you how much everyone generated

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that year combined within your country's

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borders from employees who sell their

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time to businesses who sell products or

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services all economic participants sell

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something and that's what the GDP

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measures it basically adds up the value

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of all final goods and services which

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have been produced within a country's

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borders over a certain period of time

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the government taxes all of these

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economic participants and the money it

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makes each year isn't the entire GDP but

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rather a percentage of the GDP the money

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your government makes each year is

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called government revenue but since far

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more people talk about the GDP when

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assessing how well a country did it

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should come as no surprise that the

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average individual tends to confuse

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these two terms what you need to

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remember is this government revenue is

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what the government makes whereas the

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GDP is what everyone within a country's

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borders makes combined so unless

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government officials become crazy and

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increase taxes to a hundred percent the

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GDP will always be greater than the

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government revenue