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In the Term "Real GDP," What Does "GDP" Stand for and What

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In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?


Definitions:

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.

Amortization

The process of spreading out the cost of an intangible asset over its useful life or paying off a debt over time in regular installments.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company manages its liquidity.

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