Gross Domestic Product (GDP) is the total value of goods and services produced within a country in a year. Nominal GDP is unadjusted for inflation, while real GDP adjusts for inflation to reflect true economic growth. GDP and real GDP per capita can be used to measure and compare living standards and economic output between countries.

1. Gross Domestic Product
Otherwise known as GDP

2. GDP
• GDP = Gross Domestic Product
• This is total output produced by a country
in a year
• Look out of Nominal GDP and Real GDP
and make sure you know the difference

3. Nominal and Real GDP
• Nominal GDP is GDP which has NOT been
adjusted for Inflation
• Real GDP is GDP which has been adjusted
for Inflation
Nominal Adjust for
Real GDP
GDP Inflation

4. Uses of GDP
• GDP can be used as a measure of living
standards
• You can study
– Total Real GDP
– Real GDP per Head / or Per Capita
– Real GDP per Head is simply Real GDP divided
by Population

5. GDP Comparison
Flag Country Real GDP Real GDP per
Capita
European Union $15.821 Trillion $31,607
United States $15.094 Trillion $48,386
China $11.299 Trillion $8,382
India $4.457 Trillion $3,693
Japan $4.440 Trillion $34,739
United Kingdom $2.260 Trillion $36,089