Nominal GDP Price Index
What is the Nominal GDP Price Index?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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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).
What this means is that when we “deflate” nominal figures to get real figures (by dividing the nominal by the price index).
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