00:02
Once again.
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Welcome to new problems system will give it a g.
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D.
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P.
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And this is in macroeconomics.
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When you think about gdp you want to define it as the growth uh domestic product.
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So this is the growth domestic product and in a sense this is the total output.
00:26
Uh huh.
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Are good and substances goods and services in an economy.
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So this is your whole output.
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Uh when you think about the goods and services to in an economy.
00:42
And uh of course when you look at the output, one of the doctors that you live in with these investments uh investments, enterprise pride and go through another factor that that you're doing so.
01:01
In terms of gdp we just don't have gdp in general.
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But we also do have what you call phenomenon.
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Uh gdp which means that you are looking at the g.
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D.
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P.
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Uh huh.
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Gdp.
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On the basis on the basis oh current prizes on the basis of current fries and such surprise of milk, $20 or the consumer price index has a specific friends at a certain point in the economy that becomes nominal gdp.
01:39
When you think about the real gdp uh the real gdp is the g.
01:49
D.
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P adjusted justice mm uh inflation processes.
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And that makes sense because a lot of times surprises change and you're able to measure and uh determine the real prizes based on how the inflation is playing out.
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Another aspect of gdp that we tend to deal with.
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It's called the g.
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D.
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P.
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Uh deflator.
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It's called the gdp deflator.
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And this one is um uh the measurement.
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Uh the measurement of mm is the measurement of the uh of the level.
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Mhm surprises.
02:49
Yeah of all names yeah produced good and services mm baby on a specific.
03:11
Yeah.
03:12
So these are the typical terms and definitions that you're dealing with a sense when explaining gdp.
03:22
So we have the regular gdp with nominal gdp.
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Mhm.
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And then we also have the what you call the gdp deflator.
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To come back to the problem.
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We have a table with the year on the first column.
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So in that column we have 2016 we have 2,017.
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We also have 2,018.
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And then i'm also going to have the prize of milk.
03:51
So this is a table showing milk prices.
03:54
Uh huh.
03:55
A couple of dollars.
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Not too expensive.
03:58
And then we also have the quantity of milk.
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So we have depriving metal under quantity of milk.
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Mm well this one is 100 of course.
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100 quarters.
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Yeah mm and then we also have 200.
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We also have another $200-$2 in 2018.
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Uh we do have the prize of honey surprise of honey.
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And this one is $2.
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$2 just for now.
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And then finally we have the quantity well fine i think there's milk and this one too is now.
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So we have 54 or $2.
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We have 100 quads.
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Also have $2.
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And so that's what happened in 2017.
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The same graduates.
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Uh we have more unit being killed.
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And then we also have 100 quarts right here.
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100.
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And the first part of the problem is determined, determined uh nominal gdp real gdp.
05:34
Uh and then we also wanted to come into gdp deflated.
05:37
Those are three things you wanted to tell me or busier in 2016.
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That's the day when you're looking for in the second part of the problem.
05:49
Are you talking, you tell me he fainted change in the nominal gdp wanted determined that mm hmm.
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Mhm percentage change in real gdp.
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You want to see that.
06:13
And and then you also wanted to determine the percentage change in gdp this later and this percentage change if they off of mm 2017, then 2018 mm with the previous year, with the previous year as the uh previous year of the mm of benjamin.
07:04
When they use that as the benchmark? mm hmm.
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And then we also wanted to tell me a constant variable for each here.
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We want to get the constant variable for each year.
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Uh and then you i want to explain your answers for that.
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The last part of the problems.
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But he was saying that mm hmm.
07:41
On farm confirm whether or not whether or not well being mm went up in 2017 or 2018.
08:00
Okay.
08:01
Then you explain that jumping into the problem.
08:06
We start with the first section where we had to get nominal gdp uh i'm you know, gdp is the uh is equivalent to the goods and services to be introduced in the economy.
08:29
Mm so nominal gdp in 2016, we'll take the parents year prize and then you want to multiply that by uh the currency of quantity according to your quantity.
08:54
So you're looking at the prize and the quantity, this is your time right there.
08:59
So for 2016, nominal gdp becomes equivalent to $1 which is currently a price times the quantity and then what? $2.
09:20
Mhm.
09:22
Times at that point and go god that's about the milk and high european.
09:37
I so in total we got $200 for this one.
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That's the nominal gdp.
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And then in 2017 mm the nominal gdp becomes a fan on.
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You can use the same process.
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We have learned all the times.
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200, uh huh.
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$2 tons.
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100.
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And this kid was $400.
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So the last year we had $200.
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A second year we had $400.
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1 people, one happened in 2018.
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We have $2 and 200.
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Yeah, i thought all those times wondering with and this gives us a total of $800.
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That's all nominal gdp mm hmm.
10:31
The next shot is the real gdp and this one we have a similar process to open a different formula for this.
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And when you think 2016 a debate here...