What is the 'Real Value'
The real value is nominal value adjusted for inflation. The real value is obtained by removing the effect of price level changes from the nominal value of timeseries data, so as to obtain a truer picture of economic trends. The nominal value of timeseries data such as gross domestic product and incomes is adjusted by a deflator to derive their real values.
BREAKING DOWN 'Real Value'
Real values are more important than nominal values for economic measures such as GDP and personal incomes because they help ascertain the extent to which increases over time are driven by inflation and what is driven by actual growth.
For example, if personal income is $50,000 year 1 and $52,000 in year 2, but the rate of inflation is 3%, then the nominal growth rate of income is 4%, while the real growth rate is 1%.
In the U.S., the Bureau of Economic Analysis maintains the GDP Deflator that is used to compute the real rate of economic growth. The Deflator uses 2005 as the base year, which means that it is set to 100 for 2005, with other years reported relative to the 2005 dollar.

Nominal Value
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Investing Basics
What is a Nominal Value?
The nominal value of a security, such as a stock or bond, remains fixed for the duration of its life. 
Investing Basics
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Economics
Understanding Interest Rates: Nominal, Real And Effective
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Calculating the GDP Price Deflator
The GDP price deflator adjusts gross domestic product by removing the effect of rising prices. It shows how much an economyâ€™s GDP is really growing. 
Economics
Understanding the Fisher Effect
The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. 
Economics
Nominal vs. Real GDP
GDP stands for gross domestic product and is the measure of the total economic output of the goods and services of a country. 
Economics
Explaining The World With Macroeconomic Analysis
Macroeconomists try to forecast economic conditions to help consumers, firms and governments make better decisions. 
Term
What's a Real Rate of Return?
A real rate of return is an annual percentage investment return thatâ€™s adjusted for inflation, taxes or other factors. 
Economics
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An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardstick for measuring how much return lenders will get. However, ... 
Bonds & Fixed Income
Introduction To Treasury InflationProtected Securities (TIPS)
If you want to protect your portfolio from inflation, all you need are a few TIPS.

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