# how do u measure real GDP (1 Viewer)

#### MyLoveIsPure

##### Member
My text book doesnt show how to caculate the real GDP. I remember the teacher showing me, but i really forgot so how do you caculate the real GDP...or was is the change in real GDP

#### Mr-X

##### Member
I don't have my forumla sheet right here in front of me but I remember in my trial there was a question which required you to calculate the real GDP in year 2.

There was a table which gave you the money GDP of year 1 and year 2 with the CPI of year 1 and year 2 respectively.
Real GDP of year 2 was calculated by: Money GDP (year 2) x CPI (year1)/CPI (year 2)

If that's not the forumla you are looking for I'll try to get the forumla you want (or maybe someone else will).

#### david1337king

##### Member
Real GDP= Nominal GDP*100/CPI

#### dcalla

##### Parkway Drive
Mr-X said:
I don't have my forumla sheet right here in front of me but I remember in my trial there was a question which required you to calculate the real GDP in year 2.

There was a table which gave you the money GDP of year 1 and year 2 with the CPI of year 1 and year 2 respectively.
Real GDP of year 2 was calculated by: Money GDP (year 2) x CPI (year1)/CPI (year 2)

If that's not the forumla you are looking for I'll try to get the forumla you want (or maybe someone else will).
this does not measure REAL GDP. this measure GDP GROWTH.

hence this is the Economic Growth formula

#### dcalla

##### Parkway Drive
david1337king said:
Real GDP= Nominal GDP*100/CPI
this is correct.

i doubt it would be asked.

#### MyLoveIsPure

##### Member
david1337king said:
Real GDP= Nominal GDP*100/CPI
so how would you caculate the real gdp for question 3 in the 06 paper?

#### david1337king

##### Member
1995: 4000*100/145 = 2758

2005: 7550*100/170 = 4441

Therefore, it is an increase in Real GDP. So Its either A or B. Since Mortality rate decreased, living standards have increased. Therefore, Its B.
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