How would I calculate the real GDP increase between the years 2013 and 2003? 2003: Nominal GDP (Billions)- 10,960 Price Index: 82.6 2013: Nominal GDP (Billions)- 16,768 Price index: 101.8
GDP: Gross domestic product or what is commonly known as GDP is the measurement of the final value of all the goods and services that are produced within the domestic territory of a country given a specified time period. The GDP is measured in real and nominal terms, amongst which the real GDP is considered a better tool to measure the economic growth in an economy.
Nominal GDP: The entire market value of all products and services generated in a country's economy during a certain period is referred to as nominal GDP.
Real GDP: The real GDP is the measurement of the GDP value after adjusting for Inflation, i.e the value of real GDP is calculated by subtracting the value of inflation from the total value of output.
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