GDP deflator
8:20
Khan AcademySal Khan
GDP deflator
Examine the complexities of measuring prices in an economy with multiple goods and services. See how economists use an index to measure changes in prices over time, and to calculate real GDP and nominal GDP. You'll also learn about the GDP deflator, which is used to adjust nominal GDP for inflation in order to get real GDP.
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SOLVED: The GDP deflator is used to calculate the inflation rate. True or False.
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In this question, you will examine the relationship between movements in the inflation rate and the interest rate. Calculate the inflation rate as the growth rate in your CPI or GDP Deflator series using the formula: πt = (Pt - Pt-1) / Pt-1, where πt is the inflation rate in year t and P refers to your CPI or GDP Deflator. Note that you will not have an observation for inflation for the first year of your sample. GDP Deflator:1970: 0.09609839261971: 0.10648413111972: 0.12029758311973: 0.144550
In this question, you will examine the relationship between movements in the inflation rate and the interest rate. Calculate the inflation rate as the growth rate in your CPI or GDP Deflator series using the formula: πt = (Pt - Pt-1) / Pt-1, where πt is the inflation rate in year t and P refers to your CPI or GDP Deflator. Note that you will not have an observation for inflation for the first year of your sample. GDP Deflator:1970: 0.09609839261971: 0.10648413111972: 0.12029758311973: 0.144550
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