Types of GDP

There are two types of GDP; Nominal GDP and Real GDP.

Nominal GDP is the value of output products in a current year price. It can increase from year to year if either the price  or the quantity increases. If there is an increase in prices also known as Inflation, we used this.

Real GDP is the value of output produced in constant base year prices. It can be adjusted for inflation. It can also be used to measure economic growth. Real GDP can increase from year to year if the output increases.

The formula for both is Price times Quantity. However they apply in different ways.

Nominal GDP is the price of the current year times the quantity of the current year

Real GDP is the price of the given bases year times the quantity of the current year. If the bases year isn't given, you can use the earliest year shown.