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The Gross domestic product is the best way to measure a countrys economy. GDP is the total value of everything produced by all the people and companies in the country.It does not matter if they are citizens or foreign owned companies. If they are located within the countrys boundaries, the government counts their production as GDP. There are many different ways to measure a countrys GDP . Nominal GDP is the raw measurement that includes price increases. The Bureau of Economic Analysis measures nominal GDP quarterly. It revises the quarterly estimate each month as it receives updated data. Real GDP compares economic output from one year to another, you must account for the effects of inflation. To do this, the BEA calculates real GDP. It does this by using a price deflator . It tells you how much prices have changed since a base year. The BEA multiplies the deflator by the nominal GDP. The BEA makes three important distinctions. Which involves Income from U.S. companies and people from outside the country are not included. That removes the impact of exchange rates and trade policies. The effects of inflation are taken out. Only the final product is counted. For example, a U.S. footwear manufacturer uses laces and otherhb