What is the difference between Nominal GDP and Real GDP

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I don’t know why I can’t grasp this concept someone please help me out here

In: Economics

2 Answers

Anonymous 0 Comments

Real is adjusted for inflation, nominal is in the subject year’s dollars. If you want to compare GDP today vs GDP in 1960, you would want to use Real GDP, because $1 in 1960 is worth more than $1 today.

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