Understanding GDP vs Real GDP I am totally new to Economics. I have issues understanding GDP and real GDP. I have listed 3 statements below, can someone tell me if those makes sense ?


GDP Gross Domestic Product is used to get an idea of the nations economic development.
GDP excludes production that does NOT go through markets hence, GDP is not considered as a good measurement to measure the economic development.
Real GDP on the other hand is inflation-adjusted unlike GDP alone. and can be the best choice to use to measure a countries Economic development.
Yes but note economic development is more broad than just GDP. GDP measures economic output of a country and higher GDP correlates with higher development and it can be also used as a measure of economic development but more narrowly GDP is just a measure of output.
This is correct, GDP can’t measure things like home production. It’s a disadvantage of GDP but I would not necessarily say it implies it’s not a good measure. Sometimes alternative measures can be even less appropriate but if you care mainly not just about output but development there are certainly measures that might be more appropriate. For example, often development economics uses the number of people in absolute poverty as development indicator, or access to education or other factors. There is also Human Development Index (HDI) that includes GDP but tries to also combine more indicators in it such as environmental quality and again education. But for some research purposes GDP might still be the best development indicator - it’s highly case specific. For example, GDP is quite objective and data on it are easily available, even if you would consider HDI superior measure, GDP might still win thanks to data availability as having large number of observations is often important.
Yes real GDP is inflation adjusted. This is important because value of money changes across time dollar today is not same dollar as dollar year ago. This situation is like if in physics length of a meter would change every year. Real GDP corrects for this. However, this only adjusts for changes in value of dollar across time. If you are doing some cross-country comparison you should also think about adjusting for purchasing power parity (the fact a dollar can have different buying power across countries).