How do I know if I’m better off than my parents were?
Gdp ^ if prices ^ and ouput stays the same or output ^ and prices stay the same
Real GDP vs. nominal GDP (base year prices vs. current year prices[this year])
o Real GDP is calculated using constant prices, past years
o Nominal gdp divided by the real gdp price level
GDP deflator: measure of the price level in the economy
ex. Canada’s GDP is based on only 2 goods: skaes and hockey pucks. Calculate the gdp with the data below.
inflation rate: the percent change in the price level from one year to the next (uses gdp deflator) can be
nominal gdp = current price x current quantity
real gdp = (prices fr