Gross Domestic Product (GDP) is one of the most widely used economic indicators, but not all GDP figures are equal. Economists distinguish between nominal GDP, which measures the value of all goods and services produced in a country using current prices, and real GDP, which adjusts for inflation to reflect true economic growth. Understanding this difference is crucial because nominal GDP can be misleading if inflation is high, while real GDP gives a more accurate picture of economic performance. This project challenges students to create a short video explaining the difference between nominal and real GDP in a clear, engaging, and visually informative way.

Students will begin by researching how nominal and real GDP are calculated, understanding why inflation distorts economic comparisons over time. They should provide real-world examples, such as comparing the GDP of a country in two different years and explaining why growth in nominal terms does not always mean the economy is stronger. They should also explore why real GDP is used in economic policymaking, helping governments and businesses make better decisions about wages, investments, and inflation control.

A key part of the video should be visually demonstrating how inflation impacts GDP calculations. Using graphs, animations, and storytelling techniques, students should illustrate how a country’s GDP may appear to grow significantly in nominal terms but stagnate in real terms due to rising prices. The video should be concise yet informative enough to teach viewers the concept in under five minutes.

The final video will summarize nominal vs. real GDP, their calculations, and real-world implications, helping students communicate economic concepts effectively in a visual format. The goal of this project is for students to demonstrate their ability to break down complex macroeconomic ideas into simple, engaging, and accessible explanations.