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About: Real gross domestic product     Goto   Sponge   NotDistinct   Permalink

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Type: softwareyago:WikicatNationalAccountsyago:Abstraction100002137yago:Communication100033020yago:Evidence106643408yago:History106514093yago:Indication106797169yago:Record106647206 New Facet based on Instances of this Class

Real gross domestic product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output. Although GDP is total output, it is primarily useful because it closely approximates the total spending: the sum of consumer spending, investment made by industry, excess of exports over imports, and government spending. Due to inflation, GDP increases and does not actually reflect the true growth in an economy. That is why the GDP must be divided by the inflation rate (raised to the power of units of time in which the rate is measured) to get the growth of the real GDP. Different organizations use different types of 'Real GDP' m