<h2>Key Concepts and Summary</h2>
<p>The nominal value of an economic statistic is the commonly announced value. The real value is the value after adjusting for changes in inflation. To convert nominal economic data from several different years into real, inflation-adjusted data, the starting point is to choose a base year arbitrarily and then use a price index to convert the measurements so that they are measured in the money prevailing in the base year.</p>
<h2>Glossary</h2>
<h3>nominal value</h3>
<p>the economic statistic actually announced at that time, not adjusted for inflation; contrast with real value</p>
<h3>real value</h3>
<p>an economic statistic after it has been adjusted for inflation; contrast with nominal value</p>

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Key Concepts and Summary

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Explore the key concepts and frameworks of macroeconomics and learn how to measure the size of the economy, track real GDP over time, and compare GDP among different countries while understanding its limitations as a measure of the standard of living.


The Macroeconomic Perspective

Key Concepts and Summary

Key Concepts and Summary

Glossary

nominal value

real value

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