why is real gdp more accurate than nominal gdp 
real gdp is considered to be more accurate than nominal gdp because it factors inflation or price changes into its calculation as such it measures the total health of the economy nominal gdp on the other hand doesn t necessarily provide an accurate picture of the economy or where it s headed that s because it factors current market prices into its calculation this means that it can only be used as a comparative metric to others that aren t adjusted for inflation 