2/29 Real v Nominal GDP

Real v. Nominal GDP Comparison

• Nominal GDP = $12.5 billion (base year)

• Nominal GDP = $15.9 billion (current year)

• GDP deflator index = 1.24
  • What is change in Nominal GDP? = 27.2%
  • What is Real GDP in current year? = $15.9/1.24 is 12,822,580
  • What is change in Real GDP? = 12,822,580-12,500,000/12,500,00 is 2.6%
  • What is Real GDP in base year? = 12,500,000