00:01
Hello, so in this video we are going to calculate gdp deflator and compare the changes in gdp deflator based on this table, which gives us data of nominal gdp and real gdp from 2010 to 2014.
00:19
So before we begin, we should review how to calculate gdp deflator.
00:27
So gdp deflator is the formula, has the following formula.
00:36
Is nominal gdp over real gdp times 100%.
00:49
So what does gdp deflator measure? we know that nominal gdp uses the price level of the current year, multiplied by all the goods produced within the year.
01:01
Well, nominal gdp is used the price level of a base year, which basically could use whichever year you want.
01:09
And then multiplied by the total quantity of products produced.
01:15
So if we divide real gdp from nominal gdp, we will get the difference between price level from the current year versus the base year.
01:25
So gdp deflator is a measure of price level.
01:30
So using this formula, we should be easily, we should be able to easily calculate the gdp deflator from 2010 to 2014.
01:38
And you should do the calculation yourself, but here is what i got here, gdp deflator.
02:04
So for 2010, the gdp deflator would be 14 ,964 divided by 14 ,784 times 100.
02:15
And what you got should be 101 .1 .22.
02:20
And for 2011, it would be 103 .30.
02:28
For 2012, it should be 105 times .17, and 2012, it should be 105.
02:39
.17, and 2012, it should be 106 .73...