If GDP grows 8% in one year and inflation, measured by the GDP deflator, grows by 6% over the same time period, then the real GDP has increased.

Name: If GDP grows 8% in one year and inflation, measured by the GDP deflator, grows by 6% over the same time period, then the real GDP has increased.
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Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP for inflation. If nominal GDP grows by 8% and inflation is 6%, the real GDP growth is approximately 2%.

If GDP Grows 8% in One Year and Inflation, Measured