As such, it's worth knowing what the headline statistic — the annual growth rate in real GDP — represents. Let's take a closer look at how to calculate this rate. Image source: Getty Images.

Why Is Real GDP a Better Measure Than Nominal GDP? It is best to calculate GDP on a real basis, rather than a nominal basis. Real GDP accounts for inflation and provides a measurement that allows ...

Real GDP accounts for inflation ... represents a kind of middle ground between the two other approaches to calculating GDP. The income approach calculates the income earned by all the factors ...

Real GDP is often considered the most important ... Experts use three main approaches to calculate GDP, which ideally should all lead to roughly the same number: 1. The Production (or Output ...