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 ...

Real gross domestic product is often a more accurate reflection of the output of an economy than nominal GDP. By eliminating the distortion caused by inflation or deflation or by fluctuations in ...

Real GDP takes into account the effects of inflation, while nominal GDP does not. Though it has limitations, GDP is a key tool to guide policymakers, investors, and businesses in strategic ...