## Gross Domestic Product:

Gross Domestic Product is a measure of the growth of an economy. Gross Domestic Product is the total goods and services produced in a geographical boundary within a particular period.

Real GDP = Current year quantity * Base year price

Real GDP in year 1 = 1,000 * 100

Real GDP in year 1 = 100,000

Real GDP in year 2 = 1000 * 100

Real GDP in year 2 = 100,000

Thus, the genuine GDP continues as before in light of the fact that despite the fact that the price expands, the yield doesn't change so there is no adjustment in genuine GDP.