How Do You Calculate Nominal Gdp Per Person?
The GDP or Gross Domestic Product is a measure of economic activity of a country. It is the market value of all goods and services that the country produces within a period of time. Due to inflation, it may appear that a country’s GDP is increasing over time even when it is not. This is because inflation causes the prices of goods and services to go up. Therefore, a more realistic measure of GDP is the nominal GDP, which takes inflation into account. Choose a base year relative to which the nominal GDP will be calculated. Assume you are interested in the nominal GDP of the US in 2009, relative to a base year of 1990. This means that you want to assess how much the economy has grown or shrunk by 2009, relative to the state of the economy in 1990. Obtain data on the number of units of all goods and services that the economy produced during 2009. Obtain data on the prices of these goods and services in the reference year, 1990. While it may be difficult to do this for every item, you can
