Real variables are economic measurements that have been adjusted for inflation, reflecting the true purchasing power and value of money in an economy. They allow economists to analyze economic data over time by stripping away the effects of price changes, making it easier to understand changes in output, income, and consumption. Real variables provide a clearer picture of economic health and growth by showing how much actual goods and services can be purchased, rather than just nominal values influenced by inflation.
congrats on reading the definition of Real Variables. now let's actually learn it.