Nominal GDP: The market value at the current price of a nation’s output of goods and services

Real GDP: The value of a nation’s output of goods and services in a particular year adjusted for
changes in the prices of goods and services from a base year. Quantity of output in the current
year x Price of the output in a base year.

Real GDP = Nominal GDP/GDP Deflator

Calculating GNI/GNP:

GNI/GNP = GDP + Income from abroad - Income sent abroad

GDP Deflator = Nominal GDP/Real GDP x 100