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Distinguish between Real and Nominal Gross Domestic Products.

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Real Gross Domestic Product: It is the total of the value of the goods and services calculated at constant price levels.

Nominal Gross Domestic product: It is the total of the value of the goods and service calculated at a current price level.

Detailed Answer:

Basis for Comparison Nominal GDP Real GDP
Meaning The aggregate market value of the economic output produced in a year within the boundaries of the country is known as Nominal GDP Real GDP refers to the value of economic output produced in a given period adjusted according to the changes in the general price level.
What is it? GDP without the effect of inflation. Inflation-adjusted GDP
Expressed in Current year prices. Base year prices or constant prices.
Valueuses Higher Comparison of various quarters of the given year can be made. Generally lower. Comparison of two or more financial year can be done easily.
Economic Growth Cannot be analyzed easily. Good indicator of economic growth.

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