Nominal Gross Domestic Product: Definition and Formula

What Is Nominal Gross Domestic Product (GDP)? Nominal gross domestic product (GDP)is GDP evaluated at current market prices.It is the total value of all goods and services produced in a given time period less the value of those made during the production process.Key TakeawaysA country's nominal GDP assesses the economic production in its economy but includes the current prices of goods and services in its calculation.GDP is typically measured as the monetary value of goods and services produced.Since nominal GDP doesn't remove the pace of rising prices when comparing one period to another, it can inflate the growth figure.Growing nominal GDP from year to year may reflect a rise in prices as opposed to growth in the number of goods and services produced.Real GDP starts with nominal GDP but factors in price change between periods.Nominal vs. Real GDP Understanding Nominal GDP The economy is a series of interrelated processes that determine how resources are allocated. These processes inc...