GDP or gross domestic product is the sum-total of goods and services produced in a country both by the private and government sectors over a specified period. GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). Inflation-adjusted GDP (i.e., real GDP) is calculated by removing the effects of changes in both price inflation and quantity from nominal GDP, often with the use of a GDP price deflator index. It is calculated relative to the prices of a selected base year. GDP addresses economic components that can be measured, but not intangible aspects of a society like well-being. Compare to Social Progress.