U.S. Real GDP vs. Nominal GDP (1929-2003)
Real World Data for Economics Principles
A GDP based on the prices that prevailed when the output was produced is called unadjusted GDP, or nominal GDP. |
A GDP that has been deflated or inflated to reflect changes in the price level is called adjusted GDP, or real GDP. |
A GDP price index is a measure of the price of a specified collection of goods and services, called a "market basket," in a given year as compared to the price of an identical (or highly similar) collection of goods and services in a reference year. |
| A nominal GDP is deflated by a GDP price index to obtain a real GDP when prices rise and is inflated by a GDP price index to obtain a real GDP when prices fall. |
Real GDP = (nominal GDP/GDP price index)*100. |
Source: |
Annual Nominal and Real GDP Data (1929 - 2003), Bureau of Economic Analysis, U.S. Department of Commerce, http://www.bea.doc.gov/bea/dn/gdplev.xls. |
 Data Showcase (Animated Data Presentation) |