Community and Government
Economics 101: What Is Nominal GDP? Learn How to Calculate Nominal GDP and the Differences Between Nominal GDP and Real GDP
Written by MasterClass
Last updated: Oct 12, 2022 • 4 min read
Nominal GDP measures a country’s total economic output (goods and services) as valued at current market prices. Nominal GDP offers a snapshot of a national economy’s value but since it uses current market prices it is greatly influenced by inflation.
What Is Nominal GDP?
Nominal GDP, or nominal gross domestic product, is a measure of the value of all final goods and services produced within a country’s borders at current market prices. Also known as a “current dollar GDP” or “chained dollar GDP,” nominal GDP takes price changes, money supply, inflation, and changing interest rates into account when calculating a country’s gross domestic product.