Travis K. answered 09/07/20
Economics Tutor for MBA, Intro (Principles), AP Micro / Macro classes
real gdp = inflation adjusted GDP Usually this is calculated by multiplying the current goods by a base year price level.
Often there is a problem in macroeconomic textbooks where you are asked to calculate the real GDP given a set of prices and quantities. Using this simple model, you multiply new quantities by base year prices.