How can one determine the real GDP from nominal GDP?

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1059097

2026-03-29 09:30

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To determine the real GDP from nominal GDP, one must adjust the nominal GDP for inflation. This is done by using a price index, such as the Consumer Price Index (CPI), to account for changes in prices over time. By dividing the nominal GDP by the price index, one can calculate the real GDP, which reflects the true value of goods and services produced in an economy after adjusting for inflation.

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