What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars)...

What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars) and U.S. Real GDP for 1979-2018 and plot them into the same graph.

What is the di§erence between the growth rate of nominal GDP, growth rate of real GDP and growth rate of realGDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1979-2018 and plot them into a graph

Expert Solution

GDP is the total value of all final goods and services, produced in an economy, during a particular period of time (usually a year). When this value gets adjusted for inflation, it becomes real GDP.

In other words, the inflation adjusted total value of all goods and services, produced in an economy, in a year is known as real GDP.

For measuring real GDP, first nominal GDP is measured of the given year. Then this value of nominal GDP is divided by GDP deflator of that year. The GDP deflator measures the level of prices of all new domestically produced goods and services, in that country during that year. GDP deflator is a measure of inflation.

The following chart provides graph of real GDP of US from year 1979 to 2018 -

The following is nominal GDP

Rahul Sunny answered 1 year ago

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