Page 43 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 43
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth
LOS 16.c: Compare nominal and real GDP and calculate and interpret the GDP deflator. ...p.53
Example: Calculating and using the GDP deflator, p.54
1. GDP in 20X2 is $1.80 billion at 20X2 prices and $1.65 billion when calculated using 20X1 prices.
Calculate the GDP deflator using 20X1 as the base period.
2. Nominal GDP was $213 billion in 20X6 and $150 billion in 20X1. The 20X6 GDP deflator relative to the
base year 20X1 is 122.3.
Calculate real GDP for 20X6 and the Real CAGR of economic output from 20X1 to 20X6.
Per-capita real GDP = real GDP div population.
Used as a measure of the economic well-being
of a country’s residents
