Because GDP measures output in terms of prices, the buyer pays the price and the seller receives it. Therefore, GDP can be measured by using either theexpenditures approach, which sums the amount paid for final goods and services, or theincome approach, which measures the income received for ...
The Consumer Price Index (CPI) is an indicator that measures the average change in prices paid by consumers for a representative basket of goods and services over a set period. It is widely used as a measure of inflation, together with theGDP deflator(see alsoGDP Deflator vs CPI). This al...
Show how to find Real GDP for a certain year using Nominal GDP and Price Index of the given year. Suppose the U.S. Air Force purchases two new fighter jets from Boeing. Would this purchase be included in the calculation of GDP? Expl...