Nominal GDP crossed the $10 trillion threshold in 2000:IIIQ, according to the advance estimate released late in October. Since 1969, when nominal GDP was at $1 trillion, increases in real GDP have contributed less to reaching the $10 trillion mark than have price level increases. Of course, some of this may be an illusion created by the oft-noted upward bias in measures of inflation. More certain is the decade-by-decade slowing in nominal GDP’s rate of increase. Slowing inflation more than offset increases in real GDP’s growth rate.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-11, pp. 11-12, 11.01.2000.