Gdp/cpi (1 Viewer)

[sunjet]

How do you find real GDP, thus economic growth with Gross GDP and CPI for 2 years?

I forgot the formula
(ie. HSC 2004 q 5 as an example)

 

[motlai]

real GDP= nominal GDP X (base CPI/current CPI)

(base CPI is always 100, as opposed to previous CPI)

economic growth= (current real GDP- previous real GDP)/previous real GDP X 100

 

[sunjet]

thanks champ