Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Which G.D.P. is the indicator of growth and development of a country?

Real G.D.P.

Real GDP is a more accurate indicator of growth and development of a country than nominal GDP because it takes into account inflation. Inflation is a general increase in the prices of goods and services in an economy over a period of time. When prices are rising, nominal GDP will increase even if the volume of production is decreasing. This is because nominal GDP is simply the value of GDP at the current prevailing prices.

Real GDP, on the other hand, is adjusted for inflation. This means that it measures the actual change in the volume of goods and services produced. Therefore, real GDP is a more accurate measure of economic growth than nominal GDP.

National income and domestic income are both measures of the total income earned by residents of a country. They are not directly related to the volume of production, so they are not as good indicators of growth and development as real GDP.