What is the Nominal GDP Price Index?
Nominal GDP Price Index is an index used to convert historical GDP numbers to a present value. It is a price index is a two-digit decimal number like 1.00 or 0.85 or 1.25 (though, for ease of use, it has traditionally been multiplied by 100 to get integer numbers like 100, 85, or 125).
What this means is that when we “deflate” nominal figures to get real figures (by dividing the nominal by the price index).
Related Topics
- Macroeconomics
- Macroeconomic Frameworks
- Macroeconomic Policy Tools
- Productivity Economics
- One-Third Rule
- Gross Domestic Product (GDP)
- Durable and Non-Durable Goods
- Weightless Economy
- Intermediate and Final Goods or Services
- Nominal GDP
- Converting Nominal to Real GDP
- GDP Inflator
- Nominal GDP Price Index
- Measuring GDP
- Gross National Product
- Net National Product
- Factor Income
- Gross National Income
- Expenditure Method
- The Problem of Double Counting GDP
- Double Counting
- Why is Tracking Real GDP Important?
- Convert Currencies with Exchange Rates
- Convert GDP to a Common Currency
- Per Capita GDP
- GDP Per Capita
- GDP as a Measure of Society Well-Being
- Limitations of GDP as a Measure of the Standard of Living