How do you calculate real gross domestic product?

Question

How do you calculate real gross domestic product while accounting for changes in prices? I’d like to understand how nominal GDP is adjusted to measure economic output in real terms.

Richer · Answer

GDP or Gross Domestic Product at constant prices is a measure of the output of an economy that eliminates the impact of price inflation. It is determined by expressing current production in terms of prices prevailing during a specific base year.

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