The main difference is that Real GDP accounts for inflation and is calculated using Nominal GDP. It is useful when trying to compare GDPs froms different times.
the economy is operating at full employment. Note: full employment is not the same as zero unemployment.
When the price level and the money wage rate change by the same percentage, the real wage rate remains constant at its full employment equilibrium level so employment remains constant and real GDP remains constant at "potential GDP" which is the quantity of real GDP at full employment.
If the population of a country was growing while the real GDP remained the same,it would signify that the per capita income remained stagnant.
Real GDP is adjusted for changes in the price level.
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
the economy is operating at full employment. Note: full employment is not the same as zero unemployment.
as long as a different sector of the economy contributes to GDP by more than was lost from unemployment, real GDP will rise, if only marginally.
When the price level and the money wage rate change by the same percentage, the real wage rate remains constant at its full employment equilibrium level so employment remains constant and real GDP remains constant at "potential GDP" which is the quantity of real GDP at full employment.
If the population of a country was growing while the real GDP remained the same,it would signify that the per capita income remained stagnant.
Real GDP is adjusted for changes in the price level.
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
It is measured by Real GDP, the reason is because you cant just say GDP. GDP consists of nominal and real GDP, nominal GDP does not include prices at different constants in other words it just uses one base price for all the different times, whereas real GDP consists of varying price levels at different times. Real GDP
the real GDP per capita
The real GDP is influenced by inflation.
Nominal GDP is GDP evaluated at current market prices. Therefore , nominal GDP wil include of the changes in market prices that have occurred during the current year due to inflation or deflation. Nominal GDP= GDP deflator.real GDP/100 Real GDP is GDP evaluate at the market price of some base year. GDP deflator --- Using the statistics on real GDP and nominal GDP, one can calculate an implecit index of the price level for the year. This index is called GDP deflator. GDP deflator = nominal GDP/real GDP .100 The GDP deflator can be viewed as a conversion factor that transform real GDP into nominal GDP. Note that in the base year, real GDP is by definition equal to nominal GDP so that the GDP deflator in the base year equal to 100.
nominal GDP and real GDP.
Real GDP/Capita