Nominal Gross Domestic Product (GDP)

Nominal GDP is the monetary value of all final goods and services produced within a country in a year, used as the most common measure of national income and economic activity. It can be calculated three ways — output, income and expenditure — which should give the same total and help assess growth and changes in living standards. Understanding GDP components (C, I, G, X − M) and what is included or excluded (for example, transfer payments are excluded; output of foreign-owned firms within a country is included) is important for interpreting the measure correctly.