Difference between Real GNP and nominal GNP
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Real
GNP
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Nominal
GNP
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(i)
Real
GNP is representation of GNP is quantity or in physical terms.
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(i)
Nominal
GNP is the representation of GNP in money tarry terms.
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(ii)
Real
GNP is also known as constant price GNP.
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(ii)
Nominal
GNP is also known as current price GNP.
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(iii)
Real
GNP measures the output produced in any period at the prices of same base
year.
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(iii)
Nominal
GNP measures the value output at the prices prevailing in the period during
which the output is produced.
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(iv)
Real
GNP is calculated relative to a set base year.
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(iv)
Nominal
GNP is calculated at the current price levels of the economy.
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(v)
Real
GNP can be used to evaluate a single economy’s history.
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(v)
Nominal
GNP is typically used to compare current economics at current price levels.
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