ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Real GDP is GDP expressed in constant, or unchanging, dollars. Adjusted for Inflation.

Detailed explanation-2: -Nominal GDP is GDP measured in current prices. It does not account for inflation from year to year. Real GDP is GDP expressed in constant, or unchanging, dollars. Real GDP adjusts for inflation. REAL GDP IS THE BEST MEASURE OF ECONOMIC GROWTH!

Detailed explanation-3: -Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. Real GDP is expressed in base-year prices. It is often referred to as constant-price GDP, inflation-corrected GDP, or constant dollar GDP.

Detailed explanation-4: -Real GDP is an inflation-adjusted calculation that analyses the rate of all commodities and services manufactured in a country for a fixed year. It is expressed in foundation year prices and referred to as a fixed cost price. It is also known as inflation-corrected GDP or constant price GDP.

Detailed explanation-5: -Because the constant price GDP tells us more about whether the economy is growing, it is sometimes referred to as the real GDP, while the current price GDP is called the nominal GDP.