BBG 101 Lecture Notes - Lecture 4: Gdp Deflator, Weighted Arithmetic Mean

• School: Tunxis Community College
• Department: Business – General
• Course: BBG 101
• Professor: Smith

Document Summary

Nominal gdp: the output of goods and services measured at current variable prices. Real gdp: the output of goods and services measured at constant prices. The gdp is a measure of the price level. It is calculated as the ratio of nominal gdp to real gdp. Gdp deflator = nominal gdp/real gdp x 100. The gdp deflator is a general price index i. e. a single number showing how much prices have risen on average in that year compared to the chosen base year. Gdp does not include: leisure, quality of environment, individual freedom, sense of community and belonging, inequalities of income or wealth. Having a large gdp enables a country to afford better schools, health care ect. Consumer price index: a number representing the weighted average of goods and services bought by consumers. Calculated by the australian bureau of statistics by: quantities bought in the base year. Choose a base year (period) and conduct a consumer survey to determine the.