ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Nominal gross domestic product (GDP) is a measurement of economic output that doesn’t adjust for inflation. GDP measures everything produced by all the people and companies within a country’s borders.

Detailed explanation-2: -Nominal GDP reflects the raw numbers in current dollars unadjusted for inflation. Real GDP adjusts the numbers by fixing the currency value, thus eliminating any distortion caused by inflation or deflation.

Detailed explanation-3: -The nominal GDP is the GDP that has not been adjusted for changes in prices or inflation while the real GDP is the GDP that has been adjusted for changes in prices or inflation.

Detailed explanation-4: -Nominal Gross Domestic Product (GDP) and Real GDP both quantify the total value of all goods produced in a country in a year. However, real GDP is adjusted for inflation, while nominal GDP isn’t.

Detailed explanation-5: -Nominal Gross Domestic Product is a way of measuring the value of all the goods and services produced by an economy at current market prices in a Financial Year. It is also known as ‘Current Dollar GDP’ or ‘Chained Dollar GDP’.