What is real GDP?

Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by an economy in a specific period, adjusted for price changes. Essentially, it measures a country's total economic output, taking price changes into account—whether they are due to inflation or deflation.

How is real GDP calculated?

Real GDP is calculated by dividing nominal GDP by a GDP deflator. Unlike real GDP, nominal GDP uses current market prices and doesn't factor inflation into its calculation. Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by an economy in a specific period, adjusted for price changes.

What makes real GDP so incredibly real?

Was this page helpful? Real GDP is the economic output of a country with inflation taken out. Nominal GDP leaves it in. Real GDP is used to calculate economic growth.