Adjusting nominal Gross Domestic Product (GDP) for price changes from a base year yields

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Adjusting nominal GDP for price changes from a base year yields real GDP. This provides a more accurate measure of economic growth as it takes into account changes in prices and inflation over time. Current GDP simply measures the total value of all goods and services produced in the current year without adjusting for price changes. Constant disposable income and GDP net of relative price changes are not commonly used economic measures.

Adjusting Nominal Gross Domestic Product (GDP) for Price Changes from a Base