Question

50 points!!!

What's the difference between official GDP and real GDP?
Which one is greater?

Thanks!

Answer 1

The main difference between the official GDP and the real GDP is that the real value, or real GDP, are fixed for inflation (the general increase in prices and fall in the purchasing value of money) while the nominal value, or official GDP, are not. Therefore, the real GDP is greater than the official GDP.

Answer 2

Hello there,
For a simple explanation, the main difference between official GPD and real GPD values is that official GPD values are adjusted for inflation, while nominal GPD values are not.
Thus, official GPD will appear higher

Hope this helps :))

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