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Nominal gross domestic product (GDP) is the measure of a country’s economic output that includes inflation or price changes. It is the market value of all final goods and services produced within a country in a given period of time. It is the total value of all goods and services produced in a country, regardless of who produced them. Nominal GDP is typically expressed in terms of current prices and does not take into account the effects of inflation or deflation.
Nominal GDP is often used to compare the size of economies from one period to another. It is also used to measure the growth rate of an economy over time. It is important to note that nominal GDP does not take into account the effects of inflation or deflation, which can have a significant impact on the value of GDP.
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Real GDP is an alternative measure of economic output that takes into account the effects of inflation or deflation. It is the measure of an economy’s output that is adjusted for the effects of price changes over time. Real GDP is typically expressed in terms of constant prices, which are adjusted for inflation or deflation. Real GDP is often used to compare the size of economies from one period to another, as it provides a more accurate measure of economic growth.
In conclusion, nominal GDP is the measure of a country’s economic output that includes inflation or price changes. It is the total value of all goods and services produced in a country, regardless of who produced them. Real GDP is an alternative measure of economic output that takes into account the effects of inflation or deflation. It is often used to compare the size of economies from one period to another, as it provides a more accurate measure of economic growth.