<p>As you pointed out, you need to distinguish between real and nominal GDP. The 3.7% growth from 1620 to 1680 is the nominal growth. To figure out real growth, you need to know the price index of the two years.</p>

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2019-05-02T12:33:53.613Z
2019-05-02T12:33:53.613Z
Art
<p>If nominal GDP is, for example, \$1,620 billion in 2017 and increases to \$1,680 billion in 2018, is the growth rate 3.7%? Or does real GDP first need to be calculated using a deflator? </p>

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2019-05-02T12:43:23.643Z
Are you asking if this (reporting real GDP grown) is usually the case? Or are you asking about some specific context?
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<inflation><gdp>
Nominal and Real GDP
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# Nominal and Real GDP

(Asked by: username_0 on 2019-05-02)

If nominal GDP is, for example, \$1,620 billion in 2017 and increases to \$1,680 billion in 2018, is the growth rate 3.7%? Or does real GDP first need to be calculated using a deflator?

**Tags:** inflation, gdp

> **Comments:**
> **username_1**: Are you asking if this (reporting real GDP grown) is usually the case? Or are you asking about some specific context?  

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## 1 answers

### Answer by username_2 on 2019-05-02. Score: 2 | Accepted answer

As you pointed out, you need to distinguish between real and nominal GDP. The 3.7% growth from 1620 to 1680 is the nominal growth. To figure out real growth, you need to know the price index of the two years.


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