NOMINAL AND REAL GDP: BASIC MACROECONOMIC IDENTITIES

Abstract

This article examines the concepts of Nominal and Real Gross Domestic Product (GDP) and analyzes the fundamental macroeconomic identities. The distinction between nominal and real values is crucial for assessing the true economic growth of a country, independent of price level changes. The paper discusses the methods of GDP calculation, the limitations of GDP as a welfare indicator, and the circular flow of income. Furthermore, it provides an empirical analysis of economic indicators and sectoral structure in the Republic of Uzbekistan, along with forecasts for future development.