GDP Deflator발음듣기
GDP Deflator
But now let's think about things a little bit more generally a little bit, you know, more complex economies.발음듣기
And let's say that in year one economists have determined that the level of prices of goods and services produced in that economy is a 100.발음듣기
So they've essentially just multiplied and divided it by right numbers so that their index that they generate just says that is 100.발음듣기
This would have been a very simple thing to do if there was only one good or service in the economy, like our last example - apples.발음듣기
They might be goods and services that are offered in year one but don't exist any more in year two.발음듣기
If you call the general level of prices a 100 in year one it's now a 110 or in other way that think about there're things of gotten 10 % more expensive.발음듣기
Now if we assuming that we had we know this relationship it's one again it's an easy thing to figure out and it actually turns out there is no perfect way to do this.발음듣기
Whatever you talk about real GDP you're talking about GDP in terms of the prices in some base year.발음듣기
So whatever were goods and services that we produced in year two, we're going to think about, what if they were in the same prices as in year one.발음듣기
So the ratio, so let's me write, nominal GDP, so this is GDP in year two measured in year two dollars, divided by, I guess we call this as proportion really, divided by a real GDP in year two and is measured in year one dollars.발음듣기
Well, that's going to be the same thing as the ratio of the prices between year two and year one.발음듣기
For example we could say "Well, nominal GDP not that's right nominal now, but this is right a kind of specify that exactly we're talking about.발음듣기
This is a nominal GDP of year two. So now we could say nominal GDP is equal to we can multiplay boatsides times that's the real GDP.발음듣기
Or we can measure, we can divide, we can divide boatsides of this equation by this 110 over 100 and then we get nominal GDP in year two divided by 110 is egual to real GDP.발음듣기
And writing in this way the kind of feels like you're taking nominal GDP in year two and prices have increased, there would be the generall increase in the level od prices that's cold price inflation.발음듣기
So another way you could think we're deflating the nominal GDP in year two to get the real GDP in year two or getting it in, remember this is in year one prices.발음듣기
And because od that this number right over here, this number right over here is referred to as the deflator.발음듣기
You pick up base year and in this case was year one that base year could be 1985 it could be 2006, and also it could be anything.발음듣기
Well, that base year was a 100, your deflator, was gonna say, how much things are now in this year?발음듣기
But the reason why it's called the deflator it's because generally you have inflation's time goes on and generally you're going to be defalting your nominal GDP.발음듣기
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