Unformatted text preview: Real vs Nominal GDP Nominal: calculate using current year quantities and current year price Real GDP: calculate current year Q but base year prices. Chainweighted Output index – two p/2 An index that uses the prices of two adjacent years to calculate the growth rate of real GDp. GDP deflator = nominal GDP / Real GDP Price level – the average of the prcies that ppl pay for all the goods and services that they buy as measure by a price index GDP deficitor the ave of current year prices as a % of base year prices....
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 Winter '07
 Peters
 gross domestic product, one year, Econ Bldg, Nominal GDP Nominal

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