Gross Domestic Product involves a calculation of the total value of the goods and services generated within an economy in a stated or identified time period. The main difference between real GDP and nominal GDP is that nominal GDP does not consider how inflation affects the price of goods over time. What is the best way to measure our economy?
The concept of GDP is used to measure the economic health of a country. A country can have a positive GDP but not necessarily economic well-being in that particular country. Can you think of an example where this is present?