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GDP refers to the total market value of goods and services produced. Since the market value is calculated by multiplying the price to the quantity, it means, the price times the quantity for all the goods in the economy where adding all the value gives the real GDP. The formula for real GDP is nominal GDP divided by the GDP deflator: R = N/D. Real gdp is inflation-adjusted nominal gdp and it can be expressed in base-year prices, and is often used with terms "constant-price," "inflation-corrected”, or "constant dollar."
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