reply to: Nominal GDP or Gross Domestic Product is a the summary of the total value of good and services during any given time in the economy. By determining the value of good and services a country is able to determine how well the economy is doing at any given time. Things that impact the GDP would include unemployment rate, industry production, retail sales. and gross domestic products. If you think about GDP similar to the way one thinks about an ecosystem. With an ecosystem there has to be a balance of food, habit, and living things. If an ecosystem has to much of one source this disrupts the balance of the ecosystem. Using that thought process with nominal GDP. If there is a higher than normal unemployment shift this will prevent spending cause extra unpurchased products in the system. This would cause distributors so loose cash flow. Loss in cash would prevent loss in product of good and services impact the balance in the economy. This is why it is so important to have a health balance to many the economy