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Nominal GDP

Nominal gross domestic product (GDP) is a measure of the total value of all goods and services produced in an economy in a given period of time, such as a year. It is calculated by summing the market value of all goods and services produced, regardless of whether they are sold domestically or abroad.

However, nominal GDP does not take into account changes in the price level (inflation or deflation), so it may not provide a accurate picture of the economy's purchasing power or the standard of living of its citizens. To account for changes in the price level, economists often use a measure called real GDP, which adjusts for inflation and is expressed in constant prices.

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