why is measuring real gdp important 
countries with larger gdps will have a greater amount of goods and services generated within them and will generally have a higher standard of living for this reason many citizens and political leaders see gdp growth as an important measure of national success often referring to gdp growth and economic growth interchangeably gdp enables policymakers and central banks to judge whether the economy is contracting or expanding whether it needs a boost or restraint and if a threat such as a recession or inflation looms on the horizon by accounting for inflation real gdp is a better gauge of the change in production levels from one period to another 