Real GDP is the gross domestic product and expressed in constant or unchanging prices that does adjust for inflation and is the best measure of economic growth. Where Nominal GDP is gross domestic product measured in current prices that does not account for inflation.
For example;
Year 2000
Nominal GDP = $100 million
Real GDP = $100 million
Year 2001
Nominal GDP = $110 million,
Real GDP = $105 million
Nominal GDP Growth Rate = 10%
Real GDP Growth Rate = 5%
