What does real mean in economics?

In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed. Changes in real terms therefore exclude the effect of inflation. read more

The 'real' word means accounting for inflation while counting the metric. For example, in 2012: GDP was $10; in 2013, it grew to $20. However, during 2013, the inflation was 50%. Thus what you could buy for $10 in 2012, you will be able to buy that for $15. read more

The real value is obtained by removing the effect of price level changes from the nominal value of time-series data, so as to obtain a truer picture of economic trends. The nominal value of time-series data such as gross domestic product and incomes is adjusted by a deflator to derive their real values. read more

In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed. Changes in real terms therefore exclude the effect of inflation. In contrast with a real value, a nominal value has not been adjusted for inflation, and so changes in nominal value reflect at least in part the effect of inflation. read more