Index numbers Flashcards

1
Q

Index number calculation

A

= (data value in year y/ base year value)*100

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2
Q

what does nominal GDP measure:

A

the value of national output at current prices with no adjustment for inflation

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3
Q

what does real GDP measure:

A

the volume of output adjusted for inflation and measured at constant prices

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4
Q

real GDP in year t =

A

(nominal GDP in year t x100)/ price index in year t

100= price index in base year

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