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GPA is definitely recalculated. I would look more at the average top % ranking. Be in the top 5% would be good for competitive colleges like Tepper and the like. Try to be in the top 10% at the least. They definitely take out stuff like Gym and some electives. I believe my non-important electives were also taken out but I'm not sure about that.
I'm not sure about that either since my school didn't have A+ or minuses. I think they just look at your cum # such as a 3.67 and then take out certain classes.
The process doesn't matter though, as you're not the one making the decisions.