• ### Base year

The year from which constant prices or quantities are taken in calculations of such indices as real GDP and CPI.

• ### Bureau of Labor Statistics

The government organization responsible for regularly gathering data about the economic status of the population.

• ### 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.

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.

• ### 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.

• ### 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.

• ### 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.

• ### 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.

• ### Nominal gross domestic product (nominal GDP)

The sum value of goods and services produced in a country and valued at current prices.

• ### 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.

• ### 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)