GDP/recession calculation question

[Special K]

The most common way a recession is characterized by the NBER is two consecutive quarters of a negative GDP.

Do they mean real GDP or nominal GDP? If they mean real GDP, what calculated number do they use to factor in inflation?

I have searched for this on google but could not find any mention of whether they use real or nominal GDP, and how inflation is calculated if real GDP is used.

 

[ElFenix]

off the top of my head i'd say real GDP is used, because nominal is a somewhat meaningless number

 

[Special K]

bump for anyone who may have more details

 

[IHateMyJob2004]

AS far as I am concerned, I agree with Warren Buffet. It should not be 3 quaretrs of negetive GDP growth. It should be 3 quarters of growth less than 1% because that is the rate that the population grows on average.

Anyways ..... recession is important in theory. The thing is, the economy is either good or bad without this useless definition of recession. Are two bad quarters glorious while 3 bad ones the end of the world? What if growth is -10%,5%,-10%. Well, that is not a recession right so that must be good.

Sorry, but it is a stupid defintion. Unless you are in school and need to know this, don't spend to much time worrying about it.