Real Gross Domestic Product (GDP) is a macroeconomic measure of the value of output economy adjusted for price changes (that is, inflation or deflation)[1]. The adjustment transforms the money-value measure, called nominal GDP, into an index for quantity of total output. Nominal gross domestic product is defined as the market value of all final goods and services produced in a geographical region, usually a country. That market value depends on two things: the actual quantities of goods and services produced, and their respective prices (referred in lower case below). The relation between the nominal and real values is given the following definitional relation:

where GDP stands for nominal GDP and Price stands for the price index of GDP.

Real GDP is a prime example of the distinction between real vs. nominal values in economics.

If adequate price and quantity data are known, GDP can be found by:

Then real GDP can be found by substituting the current-year prices with the prices in some base year.

Ronald Ernest "Ron" Paul (born August 20, 1935) is an American politician who has been the U.S. Representative for Texas's 14th congressional district, which includes Galveston, since 1997, and a three-time candidate for President of the United States, as a Libertarian in 1988 and as a Republican in 2008 and currently 2012. He is an outspoken critic of American foreign and monetary policies, including the Military–industrial complex and the Federal Reserve, and is known for his libertarian-leaning views, often differing from his own party on certain issues.

A native of Pittsburgh, Pennsylvania, Paul is a graduate of Gettysburg College and Duke University School of Medicine, where he earned his medical degree. He served as a medical officer in the United States Air Force from 1963 until 1968. He worked as an obstetrician-gynecologist from the 1960s to the 1980s, delivering more than 4,000 babies. He became the first Representative in history to serve concurrently with a child in the Senate when his son Rand Paul was elected to the United States Senate for Kentucky in 2010.