how do u measure real GDP (1 Viewer)

[MyLoveIsPure]

My text book doesnt show how to caculate the real GDP. I remember the teacher showing me, but i really forgot so how do you caculate the real GDP...or was is the change in real GDP

 

[Mr-X]

I don't have my forumla sheet right here in front of me but I remember in my trial there was a question which required you to calculate the real GDP in year 2.

There was a table which gave you the money GDP of year 1 and year 2 with the CPI of year 1 and year 2 respectively.
Real GDP of year 2 was calculated by: Money GDP (year 2) x CPI (year1)/CPI (year 2)

If that's not the forumla you are looking for I'll try to get the forumla you want (or maybe someone else will).

 

[david1337king]

Real GDP= Nominal GDP*100/CPI

 

[dcalla]

I don't have my forumla sheet right here in front of me but I remember in my trial there was a question which required you to calculate the real GDP in year 2.

There was a table which gave you the money GDP of year 1 and year 2 with the CPI of year 1 and year 2 respectively.
Real GDP of year 2 was calculated by: Money GDP (year 2) x CPI (year1)/CPI (year 2)

If that's not the forumla you are looking for I'll try to get the forumla you want (or maybe someone else will).

this does not measure REAL GDP. this measure GDP GROWTH.

hence this is the Economic Growth formula

 

[dcalla]

Real GDP= Nominal GDP*100/CPI

this is correct.

i doubt it would be asked.

 

[MyLoveIsPure]

Real GDP= Nominal GDP*100/CPI

so how would you caculate the real gdp for question 3 in the 06 paper?

 

[david1337king]

1995: 4000*100/145 = 2758

2005: 7550*100/170 = 4441

Therefore, it is an increase in Real GDP. So Its either A or B. Since Mortality rate decreased, living standards have increased. Therefore, Its B.