Specifically, Real GDP takes Nominal GDP (usually the headline GDP figure) and expresses the number in a base year's prices. Analysts take Nominal GDP and divide it by the GDP Deflator, thereby expressing today's growth figures in a more consistent base year's. This makes year to year comparisons more relevant.

If today's Nominal GDP is $103B, and the GDP Deflator is 3%, the Real GDP is $103B/1.03, or $100Billion.

Generally any 'real' variable has been controlled for inflation.

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