Nominal+GDP+v+Real+GDP


 * Nominal GDP v Real GDP**

GDP or Gross Domestic Product is the value of all the final goods and services that are produced in a country during a specific time period. There are two ways to measure GDP it can either be calculated as Real GDP or Nominal GDP. Real GDP is the value of goods and services measured in terms of a base year price. Measuring it in a base year helps adjust to inflation so multiple years can be compared. Nominal GDP is the value of goods measured in terms of the current price.

__How to Calculate Nominal and Real GDP__
 * <  ||< Quantity of CD's ||< Price of CD's ||< Quantity of DVD's ||< Price of DVD's ||
 * < 2002 ||< 15 ||< 6 ||< 25 ||< 10 ||
 * < 2010 ||< 25 ||< 8 ||< 30 ||< 12 ||

X1 2002-Nominal GDP (15*6) + (25*10) =340 X2 2010-Nominal GDP (25*8) + (30*12) =560 X3 2010-Real GDP (25*6) + (30*10) =450

If you compare X2 to X3 you will be able to see how the prices have changed, and if the prices have inflated or deflated over past years.

The attached graphs show the recent patterns of Nominal and Real GDP in the United States. http://data360.org/graph_group.aspx?Graph_Group_Id=149