GDP, or a gross internal product, - one of the most important indicators of development of economy. At calculations distinguish nominal and real GDP. The second of them more evident since it considers change of price level. So that to calculate real GDP, it is necessary "to clean" nominal from the inflation impact.
It is required to you
- - statistical data for the necessary period;
- - calculator or computer applications for calculations.
Instruction
1. Define the base year, i.e. year in which prices you also will calculate real GDP. For example, you need to calculate real GDP of 2010 in the prices of 2009, in that case base year will be 2009. Keep in mind that the base year optional has to be chronologically before current (studied).
2. Find out the volume of nominal GDP of the studied period expressed in monetary units. You can obtain similar information in statistical reference books or on the websites of statistical services. For example, you can use data of Rosstat or World Bank.
3. Determine the price index which you will use for calculation of real GDP, and find its value. Most often as it the consumer price index or a deflator of GDP are used. CPI, or consumer price index, is calculated on the basis of the price of a consumer basket in which the goods and services consumed by a city average-income family within a year are included.
4. In macroeconomic models and tasks for calculation of real GDP the so-called deflator of GDP is usually used. It is calculated on the basis of the cost of all goods and services made by national economy within a year. Such indicators as CPI and a deflator of GDP, as a rule, are set by statements of the problem or they can be found in official statistical reference books.
5. Most often statistical services publish values of these indexes in comparison to the prices of previous year therefore if in your task as basic it is used not previous in relation to studied year find value of the index can be difficult. Besides, it it is almost impossible to calculate independently since for this purpose it is necessary to possess information on quantity consumed (or made) goods of each category and also about the prices of these goods.
6. Divide the volume of nominal GDP into value of the chosen price index. The received number is also the volume of real gross domestic product.