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What is 'Gross Domestic Product - GDP'. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.
Real GDP, on the other hand, takes into account the effects of inflation and deflation. For example, the nominal GDP of a country was $800 Billion in 2011, but this year the countryâs GDP is $840 Billion and shows an increase of 5%. The countryâs inflation level is currently at 2%.