A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What is the difference between real gdp and nominal gdp?

Best Answers

The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Nominal values of GDP (or other income measures) from different time periods can differ due to changes in quantities of goods and services and/or changes in general price levels. read more

Full Answer. The inflation rate changes from year to year in most cases, so using real GDP is a good way to compare the GDP rates of different years. read more

Nominal GDP versus Real GDP comparison chart; Nominal GDP Real GDP; Definition: Nominal GDP is the market value (money-value) of all final goods and services produced in a geographical region, usually a country. Real GDP is a macroeconomic measure of the value of output economy, adjusted for price changes. read more

Encyclopedia Research

Related Types