value of output produced in current prices
Can increase from year to year if either output or prices increase
economic growth
Real GDP (pq)
value of output produced in constant or base year prices
Can only increase if output increases
GDP Deflator
for years after the base year, GDP deflator is greater than 100
for years before the base year, GDP deflator is less than 100
Below is a great video explaining how to calculate real and nominal GDP:
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