Nominal GDP



A gross domestic product (GDP) figure that has not been adjusted for inflation.

Also known as "current dollar GDP" or "chained dollar GDP."


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It can be misleading when inflation is not accounted for in the GDP figure because the GDP will appear higher than it actually is. The same concept that applies to return on investment (ROI) applies here. If you have a 10% ROI and inflation for the year has been 3%, your real rate of return would be 7%. Similarly, if the nominal GDP figure has shot up 8% but inflation has been 4%, the real GDP has only increased 4%.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Inflation

    The rate at which the general level of prices for goods and services ...
  3. Nominal Interest Rate

    The interest rate before taking inflation into account. The equation ...
  4. Expenditure Method

    A method for calculating GDP that totals consumption, investment, ...
  5. Per Capita Gross Domestic Product

    Per capita GDP is a measure of the total output of a country ...
  6. Gross National Product - GNP

    Gross National Product (or GNP) is an economic statistic that ...
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