Dear bevchrisp-ga ,
Real GDP is Gross Domestic Product which has been adjusted for
inflation and price chages.
Here are some definitions for these terms:
GDP
Gross Domestic Product. The total market value of all final goods and
services produced in a country in a given year, equal to total
consumer, investment and government spending, plus the value of
exports, minus the value of imports.
http://www.investorwords.com/2153/GDP.html
real GDP
The number reached by valuing all the productive activity within the
country at a specific year's prices. When economic activity of two or
more time periods is valued at the same year's prices, the resulting
figure allows comparison of purchasing power over time, since the
effects of inflation have been removed by maintaining constant prices.
http://www.investorwords.com/5949/real_GDP.html
There is additional information and diagrams on this South Western
Business School web site -
"Gross domestic product (GDP) is the annual aggregate money value of
all final goods and services produced by the economy. GDP changes over
time when the output of goods and services changes, and when the
prices of these goods and services change. Economic growth occurs when
the total output of goods and services increases. Since a change in
GDP can be caused by a change in prices rather than a change in
output, in order to measure economic growth we must adjust GDP for the
effects of inflation. Inflation-adjusted GDP is called real GDP, and
it is computed by dividing nominal GDP by the relevant price index."
http://www.swlearning.com/economics/econ_data/real_gdp/real_gdp_definition.html
I hope this answers your question. If it does not, or the answer is
unclear, then please ask for clarification of this research before
rating the answer. I shall respond to the clarification request as
soon as I receive it.
Thank you
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