Investor Glossary-real gdpInvestor Glossary-real gdpInvestor Glossary-real gdpInvestor Glossary-real gdpInsightful stock market charts - Click here
investor
Categories    # 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 GDP

The HTML to link to this page
 

Real GDP is gross domestic product in constant dollars. In other words, it is a nation's total output of goods and services, adjusted for price changes. Real GDP can be compared to nominal GDP, which is GDP in current dollars, (i.e. the nation's output in actual dollars in a given year). Here's an example: suppose in year 1 a country produced a total of five widgets priced at $10 each, or $50 total. In year 2, it produced the same five widgets, but the price rose to $12, or $60 total. Assume year 1 is the base year used to calculate real GDP. In year 1, nominal GDP was $50 and real GDP was also $50. In year 2, nominal GDP was $60; but real GDP was only $50, because in constant (year one) dollars, only $50 in widgets were produced. By eliminating the effect of price changes, real GDP allows economists to make useful comparisons of a nation's output and services. Note that real GDP is also known as constant-price GDP and inflation-corrected GDP.



Rate this real GDP definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: diluted share, phantom income, labor relations, liquidity ratio, APR, per diem, ex-dividend date, ex-dividend, inflation, FICO score, option premium, average price per share, cancelled check, VIX, deferred revenue, covered put, class C shares, quality assurance, irrevocable trust, command economy, in escrow, wholly-owned subsidiary, retained earnings, debt service coverage, balance sheet, real GDP, required rate of return, 1031 exchange, minority interest, dividends payable, EBITDA, deferred tax, risk management, Key Rate Duration, 144a, annual return, implied volatility, limit order, LIBOR, 1035 exchange, margin rate, stock split, open position, 401a, reverse mortgage, current ratio, Zero Cost Collar, FTSE, stock market close


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use