Real and Nominal GDP Gross Domestic Product - Cohelev

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Although the size of an economic system may vary from a small business to an entire economy of a country, the basic factors taken into consideration for performance evaluation remain the same. Just like the performance of any business is evaluated by the total value of sales made by it in a financial year or a business quarter, the performance of a country`s economy is evaluated using the concept of Gross Domestic Product (GDP). There are two types of GDP evaluated, which vary in their method of calculation. They are known as Real GDP and Nominal GDP. This article presents a real GDP vs nominal GDP comparison which identifies the differences between these two types. ...