Nominal vs. Real GDP

Are you better off today than you were 4 years ago What about 40 years ago These sorts of questions invite a different kind of query: what exactly do we mean, when we say better off And more importantly, how do we know if were better off or not To those questions, theres one figure that can shed at least a partial light: real GDP. In the previous video, you learned about how to compute GDP. But what you learned to compute was a very particular kind: the nominal GDP, which isnt adjusted for in