Real Economic Growth Rate

finance- a la shmoop. what is a real return? like is there a fake return? you

know like the news? well kinda .real return refers to an [man frowns talking to camera]

investment return mapped against inflation. so let's say you invest in a

bond that pays five percent a year for ten years and then pays you back your

principal .boring but nice- you know like a good doctor visit. your nominal return

over that period was 5% but since inflation was 3% a year during that

period on average your real return was only 2% a year- meaning that the

performance of your investment only eked out a 2% net gain against the price of [equation]

milk gas and you know knocked off iPhones. so don't be a chump who thinks

that they're making more money than they really are, and you know keep on keeping

it real. [man sitting in chair, talks to camera]