Nominal versus real
Nominal GDP uses current prices. Real GDP adjusts for price changes; a larger money total need not mean more output.
FinFly Explains / Economy
What GDP measures
GDP values final goods and services produced within a country during a specified period.
Reading a release
Match periods and units. A half-year total is not directly comparable with a full year.
Limits
GDP does not show income distribution or everyone’s wellbeing. Economic growth is not an equal pay rise.
Questions
Short answers
Is GDP per capita a salary?
No. It divides production by population.
Method
Primary sources
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