Real GDP refers to the inflation-adjusted measure of the total value of all final goods and services produced within an economy over a specific period. It is calculated using constant prices from a chosen base year, which removes the distorting effects of price changes and enables accurate comparisons of economic output and growth across different time periods.

This contrasts with nominal GDP, which uses current prices and can be misleading due to inflation. Real GDP is often derived by dividing nominal GDP by a price index, such as the GDP deflator, to adjust for changes in the overall price level.