Macroeconomics › Section F · The macroeconomic perspective › Topic F.2
Adjusting nominal values to real values
GDP measured in dollars can rise because the economy makes more, or simply because prices went up. Stripping out the price changes turns nominal figures into real ones, and real figures are the ones that tell you whether people are actually producing and earning more.
In this topic
- A number that can fool you
- Nominal and real values
- Worked example: a two-good economy
- The GDP deflator
- Worked example: real US GDP since 1960
- Measuring growth rates
- A quick approximation
- Real values beyond GDP
- Chained dollars
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…