Real GDP
Real Gross Domestic Product (GDP) is a measure of the total economic output of a country, adjusted for inflation. It is used to compare the economic performance of different countries and to measure the growth of an economy over time. Real GDP is calculated by taking the nominal GDP (the total value of goods and services produced in a given year) and adjusting it for changes in the prices of goods and services over time. This adjustment is necessary because inflation can distort the true value of economic output.
History of Real GDP
Real GDP was first developed in the 1930s by economists John Maynard Keynes and Simon Kuznets. It was initially used to measure the economic performance of the United States during the Great Depression. Since then, it has become the standard measure of economic output for countries around the world. Real GDP is used to compare the economic performance of different countries and to measure the growth of an economy over time.
Comparison of Real GDP
| Country | Real GDP (in billions of US$) |
|---|---|
| United States | 20,584 |
| China | 14,140 |
| Japan | 5,919 |
| Germany | 3,890 |
| United Kingdom | 2,845 |
Summary
Real GDP is an important measure of economic output, used to compare the economic performance of different countries and to measure the growth of an economy over time. It is calculated by taking the nominal GDP (the total value of goods and services produced in a given year) and adjusting it for changes in the prices of goods and services over time. For more information on Real GDP, visit the websites of the World Bank, the International Monetary Fund, and the United Nations.
See Also
- Nominal GDP
- GDP per Capita
- GDP Deflator
- Gross National Product (GNP)
- Gross Domestic Income (GDI)
- Gross Value Added (GVA)
- Gross Fixed Capital Formation (GFCF)
- Gross National Income (GNI)
- Gross Output (GO)
- Gross Domestic Expenditure (GDE)
