Index numbers Flashcards
1
Q
Index number calculation
A
= (data value in year y/ base year value)*100
2
Q
what does nominal GDP measure:
A
the value of national output at current prices with no adjustment for inflation
3
Q
what does real GDP measure:
A
the volume of output adjusted for inflation and measured at constant prices
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