Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 6: Q. 16 (page 160)

How do you convert a series of nominal economic

data over time to real terms?

Short Answer

Expert verified

We utilize inflation-adjusted data to turn nominal economic data from numerous years into real data.

Step by step solution

01

Inflation-adjusted data 

The practice of eliminating the impact of price inflation from data is known as inflation adjustment.

02

Description

Nominal data is not adjusted for inflation and includes price changes. To transform nominal economic data from multiple years into real data, inflation-adjusted statistics, pick a base year randomly then use a price index to convert the measures into the base year's money.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

According to Table 6.7, how long has the average expansion lasted since the end of World War II?

What are the main components of measuring GDP

with what is produced?

Should people typically pay more attention to their

real income or their nominal income? If you choose the latter, why would that make sense in today’s world? Would your answer be the same for the 1970s?

According to Table 6.7, how often have recessions occurred since the end of World War II (1945)?

In 1980, Denmark had a GDP of \(70 billion

(measured in U.S. dollars) and a population of 5.1

million. In 2000, Denmark had a GDP of \)160 billion (measured in U.S. dollars) and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free