real GDP

Definition

The number reached by valuing all the productive activity within the country at a specific year's prices. When economic activity of two or more time periods is valued at the same year's prices, the resulting figure allows comparison of purchasing power over time, since the effects of inflation have been removed by maintaining constant prices.

Use real GDP in a sentence

Real GDP is considered a more accurate measure of an economy's gross domestic product than nominal GDP because it takes into account inflation and changes in the economy's price level.

​ Was this Helpful? YES  NO 9 people found this helpful.

You should do your best to figure out how you can make a countries real GDP work in your business favor.

​ Was this Helpful? YES  NO 6 people found this helpful.

If you think you may want to do business in a new country one of the first things you should figure out is their real GDP.

​ Was this Helpful? YES  NO 13 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
real gain or loss real income