real GDP

(noun)

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output.

Related Terms

Examples of real GDP in the following topics:

  • The Business Cycle

    • Expansion: The period of time in which real GDP rises and unemployment declines.
    • Contraction: The period of time in which real GDP declines and unemployment rises.
    • Peak: A peak occurs when the real GDP reaches its maximum, stops rising, and begins to decline.
    • Trough: A trough occurs when the real GDP reaches its minimum, stops declining, and begins to rise.
    • Business cycles are usually measured by considering the growth rate of real gross domestic product.

  • Growth Economics

    • By itself, GDP doesn't necessarily tell us much about the state of the economy, but change in GDP does.
    • It is conventionally measured as the percent rate of increase in real GDP.
    • Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced.
    • To express real growth rather than changes in prices for the same goods, statistics on economic growth are often adjusted for inflation or deflation.
    • The table might mention that the figures are "inflation-adjusted," or real.

  • Gross Domestic Product

    • GDP only refers to goods produced within a particular country.
    • GDP.
    • Components of GDP by expenditure are:
    • Another way of measuring GDP is to measure total income.
    • Two adjustments must then be made to get GDP:

  • Productivity

    • The change of real income signifies a move from Point 1 to Point 2 on the production function .
    • We see that the real income has increased by 58.12 units, of which 41.12 units came from the increase of productivity growth.
    • Total productivity is that part of real income change which is caused by the shift of the production function.
    • One of the most widely used measures of productivity is Gross Domestic Product (GDP) per hour worked.
    • At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs.

  • Long-Term Loans

    • A mortgage is a loan secured by real property.

  • Free Enterprise

    • Peoples' Republic of China's Nominal Gross Domestic Product (GDP) Between 1952 to 2005
    • Scatter graph of the People's Republic of China's GDP between years 1952 to 2005, based on publicly available nominal GDP data published by the People's Republic of China and compiled by Hitotsubashi University (Japan) and confirmed by economic indicator statistics from the World Bank.

  • Definition and Challenges of a Global Corporation

    • As gross domestic product (GDP) growth migrates from mature economies, such as the US and EU member states, to developing economies, such as China and India, it becomes highly relevant to capture growth in higher growth markets. is a particularly strong visual representation of the advantages a global corporation stands to capture, where the darker green areas reppresent where the highest GDP growth potential resides.
    • In that year China and India had the highest GDP growth rates.

  • Major Historical Developments in the Global Economy

    • One particularly relevant success story was the United States economy in the 20th century, which as a result of large technological increases provided enormous opportunities for GDP growth .
    • As a result, the United States per capita GDP levels in 2010 were equivalent to nearly 500% of those in 1929.
    • This adverse factor on GDP growth effected each individual country differently, pushing Greece, Spain, Italy, and a number of other countries to the brink of economic disaster.

  • Elements of economic globalization

    • Between 1990 and 2001, the percentage of exports and imports in total economic output (GDP) rose from 32.3 per cent to 37.9 per cent in industrialized countries, and from 33.8 per cent to 48.9 per cent in low and middle-income countries (World Briefing Paper, 2001).
    • Since 1980, global flows of foreign direct investment have more than doubled relative to GDP (World Briefing Paper, 2001).

  • Trends in Advertising

    • The share of advertising spending relative to GDP has changed little across large changes in media.
    • Advertising spending as a share of GDP was about 2.9 percent.
    • Nonetheless, advertising spending as a share of GDP was slightly lower—about 2.4 percent.