Q: What is the difference between GDP and real GDP?

Since GDP measures an economy's output, it is subject to inflationary pressure. So real GDP is a measure of an economy's output adjusted for inflation.

Question 1

How is Israel real GDP calculated?

Accepted Answer

Real GDP is calculated using a GDP price deflator, which is the difference in prices between the current year and the base year. Then nominal GDP (GDP adjusted for inflation) is divided by this deflator, yielding real GDP. Nominal GDP is usually higher than real GDP because inflation is typically a positive number.

Question 2

What is the difference between GDP and real GDP?

Accepted Answer

Since GDP measures an economy&#x27;s output, it is subject to inflationary pressure. So real GDP is a measure of an economy&#x27;s output adjusted for inflation.

Question 3

How has Israel real GDP changed over time?

Accepted Answer

Last quarter Israel real GDP was 415.79 B ILS, and the quarter before it reached 419.04 B ILS.