National output is the total value of all finished goods and services made within a country’s economy during a specific time, usually one year.

It is mainly measured by Gross Domestic Product (GDP), which adds up the total market value of everything produced. National output can be calculated in two ways:

• Nominal terms: Uses current market prices.
• Real terms: Adjusts the value to account for inflation.

By studying changes in national output, economists can understand a country’s economic health, its growth over time, and the general standard of living for its people.