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". Investopedia Says:
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%. Related Terms:
Gross Domestic Product - GDP
Gross National Product - GNP
Inflation
McCallum Rule
Nominal
Nominal Interest Rate
Real GDP
Real Interest Rate
Real Rate Of Return |