Nominal Gross Domestic Product
Nominal Gross Domestic Product (GDP) is a measure of the total economic output of a country or region in a given period of time. It is calculated by adding up the total value of all goods and services produced in a given period, usually a year. It is expressed in terms of the current prices of the goods and services produced, and therefore does not take into account the effects of inflation. Nominal GDP is used to compare the economic output of different countries or regions over time, and to measure the size of an economy.
History of Nominal GDP
The concept of nominal GDP was first developed in the 1930s by the economist Simon Kuznets. He proposed that the total value of all goods and services produced in a given period should be used as a measure of economic output. This measure was later adopted by the United Nations in the 1950s, and is now used by most countries to measure their economic output. Nominal GDP is also used by economists to compare the economic output of different countries or regions over time.
Comparison of Nominal GDP
| Country | Nominal GDP (in billions of USD) |
|---|---|
| United States | 21,427 |
| China | 14,140 |
| Japan | 5,223 |
| Germany | 3,890 |
| United Kingdom | 2,845 |
Summary
Nominal GDP is a measure of the total economic output of a country or region in a given period of time. It is calculated by adding up the total value of all goods and services produced in a given period, usually a year. It is expressed in terms of the current prices of the goods and services produced, and therefore does not take into account the effects of inflation. Nominal GDP is used to compare the economic output of different countries or regions over time, and to measure the size of an economy. For more information about Nominal GDP, visit the websites of the United Nations, the World Bank, and the International Monetary Fund.
See Also
- Real Gross Domestic Product
- Gross National Product
- Gross Domestic Income
- Gross Value Added
- Gross Fixed Capital Formation
- Gross National Income
- Gross Domestic Expenditure
- Gross Domestic Savings
- Gross Domestic Investment
- Gross Domestic Product per Capita
