Nominal vs Real GDP
Current Dollars – The price we pay for goods and services
Nominal GDP – Gross Domestic product measured in current dollars.
GDP today, not regarding inflation.
TO calculate the real GDP,
This year’s production*Last Year’s prices.
Real GDP ignores the change in prices.
Example: you make $100k a year for two years, you can buy more things the first year than the second
year because prices have inc