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Full Version: What is Real GDP?
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As Title, I haven't understood what does real GDP means.
In contrast to the "normal" GDP, "Real GDP" is inflation-adjusted. It allows a player to realistically compare the GDP of his/her own state with those of others.

This states GDP, for example, is larger than that of the average state. Thanks to the Real GDP, you can however see that is mostly due inflation. The Real GDP itself is lower than that of the average state.

Magnani Wrote:
As Title, I haven't understood what does real GDP means.

I'm not sure how the country's GDP is calculated

WilliamVC Wrote:

Magnani Wrote:
As Title, I haven't understood what does real GDP means.

I'm not sure how the country's GDP is calculated

Gdp growth -inflation i think

I'm not sure how gdp is calculated in the game, but in economics I know it is calculated through the following equation: GDP= C+G+I+NX where C is private consumer spending (Private consumption) G is total government expidentures, I is the total capital investment in the country (Capital), and NX is net exports (if you import this number would be negative, as you subtract exports-imports). Hopefully this helps!
GDP= C+G+I+NX is correct

nominal GDP: C+G+I+NX of the current quarter
real GDP: C+G+I+NX - all inflation yet
or rather
real GDP = nominal GDP / inflation index

The real GDP is calculated by valueing the goods produced in the current quarter by the price index of the first quarter.
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• Ars Regendi Simulation Forum: https://forum.ars-regendi.com/index.php
• What is Real GDP?: https://forum.ars-regendi.com/showthread.php?tid=32948