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Base year
The year from which constant prices or quantities are taken in calculations of such indices as real GDP and CPI.
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Bureau of Labor Statistics
The government organization responsible for regularly gathering data about the economic status of the population.
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Consumer price index (CPI)
A cost of living index that measures the total cost of goods and services purchased by a typical consumer within a country.
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Fixed basket
A set group of goods and services whose quantities do not change over time. This is used, for instance, in the calculation of the CPI.
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Gross domestic product (GDP)
The sum of the market values of all final goods and services produced within a particular country during a period of time.
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Gross domestic product deflator (GDP deflator)
The ratio of nominal GDP to real GDP for a given year minus 1. The GDP deflator shows how much of the change in the GDP from a base year is reliant on changes in the price level.
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Gross domestic product per capita (GDP per capita)
GDP divided by the number of people in the population. This measure describes what portion of the GDP an average individual gets.
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Gross national product (GNP)
An alternative measure of economic activity to GDP. GNP is the sum of the market values of all goods and services produced by the citizens of a country regardless of their physical location.
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Nominal gross domestic product (nominal GDP)
The sum value of goods and services produced in a country and valued at current prices.
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Real gross domestic product (real GDP)
The sum value of goods and services produced in a country and valued at constant prices, calibrated from some base year. Real GDP frees year-to-year comparisons of output from the effects of changes in the price level.
Terms
Formulae
| Gross Domestic Product |
GDP = [(quantity of A X price of A) + (quantity of B X price of B) + ... +
(quantity of N X price of N)] for every good and service produced within the
country GDP = (national income) = Y = (C + I + G + NX) |
| GDP Growth Rate | GDP growth rate = [(GDP for year N) / (GDP for year N-1)] - 1 |
| GDP Deflator | GDP deflator = [(nominal GDP) / (real GDP)] - 1 |
| GDP Per Capita | GDP per capita = (GDP) / (population) |
