Real Gross Domestic Product or real GDP
is a measure of the value of economic output like inflation or deflation of
prices . Nominal GDP on the other hand is a figure which has not been adjusted
for any inflation. Nominal GDP is also known as the ”current dollar GDP”
sometimes, “chained dollar GDP”.
Adjustment in real GDP transforms the
nominal GDP, the money-value measure an index for total output quantity.
The main difference between these two GDP’s
is that real values are adjusted for
inflation while nominal is otherwise.
