What Is Gdp

1. Gross Domestic Product (GDP)
  2. Real GDP
  3. Unemployment rate
  4. Inflation rate
  5. Interest rate
In your paper, explain how the circular flow diagram illustrates the interaction of households, government, and business. Also, describe how current economic conditions are effecting your organization (or an organization with which you are familiar). Identify the most important economic indicator affecting your organization and explain why.
Prepare a 700-1,050-word paper in which you define the following terms:
What Does Real Gross Domestic Product (GDP) Mean?
This inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price", "inflation-corrected" GDP or "constant dollar GDP".

Investopedia explains Real Gross Domestic Product (GDP)
Unlike nominal GDP, real GDP can account for changes in the price level, and provide a more accurate figure.

Let's consider an example. Say in 2004, nominal GDP is $200 billion. However, due to an increase in the level of prices from 2000 (the base year) to 2004, real GDP is actually $170 billion. The lower real GDP reflects the price changes while nominal does not. http://www.investopedia.com/terms/r/realgdp.asp

What's the difference between nominal and real?
[A:]Great question!
Generally a real variable, such as the real interest rate, is one where the effects of inflation have been factored in. A nominal variable is one where the effects of inflation have not been accounted for.
If inflation is positive, which it generally is, then the real interest rate is lower than the nominal interest rate. If we have deflation and the inflation rate is negative, then the real interest rate will be larger.
GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced...