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Nominal GDP

Nominal GDP (Gross Domestic Product) differs from real GDP in that it is not adjusted for inflation.

Expanded Definition

So for example, if a country's real GDP grows by 0%, they have produced the same amount of wealth as the previous year, but if their inflation rate is 100%, their nominal GDP will be reported as 100% (i.e. making their GDP appear to have doubled. To find nominal GDP, add inflation to real GDP (if inflation is 7%, multiply real GDP by 1.07), or conversely, to find real GDP, subtract inflation from nominal GDP (if inflation is 7%, divide nominal GDP by 1.07).

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