Nominal GDP
Nominal Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced in a given year, expressed in current prices. It is the most commonly used measure of economic activity and is used to compare the size of economies over time. Nominal GDP is calculated by adding up the value of all goods and services produced in a given year, using the prices of those goods and services at the time of production. This means that it does not take into account changes in the prices of goods and services over time, and therefore does not provide an accurate measure of economic growth.
History of Nominal GDP
The concept of nominal GDP was first developed in the 1930s by economist Simon Kuznets. He proposed that it could be used to measure the size of an economy and to compare the size of different economies over time. Since then, it has become the most widely used measure of economic activity. It is used by governments, businesses, and economists to assess the health of an economy and to compare the size of different economies.
Comparison of Nominal GDP
| Country | Nominal GDP (in billions of US dollars) |
|---|---|
| United States | 21,427 |
| China | 14,140 |
| Japan | 5,087 |
| Germany | 3,890 |
| United Kingdom | 2,845 |
Summary
Nominal GDP is a measure of the total value of all goods and services produced in a given year, expressed in current prices. It is the most commonly used measure of economic activity and is used to compare the size of economies over time. It does not take into account changes in the prices of goods and services over time, and therefore does not provide an accurate measure of economic growth. For more information about Nominal GDP, visit the websites of the World Bank, the International Monetary Fund, and the United Nations.
See Also
- Real GDP
- GDP Deflator
- GDP Per Capita
- GDP Growth Rate
- Gross National Product
- Gross Domestic Income
- Gross Value Added
- National Income
- Personal Income
- Disposable Income
