Real GDP, or Real Gross Domestic Product, measures the value of all goods and services produced in a country, adjusted for inflation. This adjustment allows for a more accurate comparison of economic performance over time, as it reflects the true growth of an economy without the distortion caused by rising prices. By using constant prices from a base year, Real GDP provides a clearer picture of economic health. Policymakers and economists often rely on Real GDP to assess whether an economy is expanding or contracting, helping them make informed decisions regarding fiscal and monetary policies.