Each of these calculations has its advantages and disadvantages, and therefore growth rates based on a range of different calculation methods should be  What is the difference between real growth rate estimation and growth rate ( annual or compound) but as per above discussed formula real GDP calculated as. Different organizations use different types of 'Real GDP' measures, for example the United Nations UNCTAD uses 2005 Constant prices and exchange rates 

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Changes in the demand for money can also affect the nominal interest rate in an economy. As shown in the left-hand panel of this diagram, an increase in the demand for money initially creates a shortage of money and ultimately increases the nominal interest rate.

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The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.. If, for example, an investor were able to lock in a 5% interest rate for the coming year

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