Difference Between Nominal GDP and Real GDP

Difference Between Nominal GDP and Real GDP
Economics
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Management Notes

GDP stands for gross domestic product and is the measure of the total economic output of the goods and services of a country. GDP is usually expressed on an annual basis, but is sometimes expressed on a quarterly basis within a year.Real GDP is equal to the economic output adjusted for the effects of inflation.Nominal GDP is economic output without the inflation adjustment.

Nominal GDP	Real GDP
Nominal GDP refers to the aggregate market value of the economic output produced in a year within the boundaries of the country Nominal GDP.	Real GDP refers to the value of economic output produced in a given period, adjusted according to the changes in the general price level.
Nominal GDP is the GDP without the effects of inflation or deflation .	Real GDP is the GDP adjusted with the effects of inflation or deflation.
Nominal GDP values the production of goods and services at current prices.	Real GDP values the production of goods and services at constant prices.
Nominal GDP is usually higher than real GDP because inflation is typically a positive number.	Real GDP is usually lower as compared to real GDP.
The actual picture of the economic growth cannot be seen easily with the help of nominal GDP.	The actual picture of the economic growth can be seen easily with the help of real GDP.