Question

Why is real GDP a more accurate measure of economic growth compared by nominal GDP

Answer 1

Answer:

Real gross domestic product is a measurement of economic output that accounts for the effects of inflation or deflation.1 It provides a more realistic assessment of growth than nominal GDP. Without real GDP, it could seem like a country is producing more when it's only that prices have gone up.

Answer 2

Explanation:

Real gross domestic product is a measurement of economic output that accounts for the effects of inflation or deflation. 1 It provides a more realistic assessment of growth than nominal GDP. Without real GDP, it could seem like a country is producing more when it's only that prices have gone up.