Real Economic Growth Rate

  

Categories: Econ

See: Real GDP.

Economic Growth Rate really is GDP, maybe GNP. But close enough for our purposes to swap 'em out.

Related or Semi-related Video

Finance: What Is a Real Return?67 Views

00:00

finance- a la shmoop. what is a real return? like is there a fake return? you

00:09

know like the news? well kinda .real return refers to an [man frowns talking to camera]

00:13

investment return mapped against inflation. so let's say you invest in a

00:17

bond that pays five percent a year for ten years and then pays you back your

00:21

principal .boring but nice- you know like a good doctor visit. your nominal return

00:27

over that period was 5% but since inflation was 3% a year during that

00:32

period on average your real return was only 2% a year- meaning that the

00:38

performance of your investment only eked out a 2% net gain against the price of [equation]

00:43

milk gas and you know knocked off iPhones. so don't be a chump who thinks

00:48

that they're making more money than they really are, and you know keep on keeping

00:52

it real. [man sitting in chair, talks to camera]

Up Next

Finance: What are Gross Domestic Product (GDP) and Gross National Product (GNP)?
8 Views

What are Gross Domestic Product (GDP) and Gross National Product (GNP)? The Gross Domestic Product is the sum total value of products and services...

Finance: What is stock based compensation?
7 Views

What is stock based compensation? Stock based compensation is exactly what it sounds like: a way to compensate employees using stock. It’s used i...

Find other enlightening terms in Shmoop Finance Genius Bar(f)