How do you calculate growth rate of nominal GDP?
How do you calculate growth rate of nominal GDP? If GDP isn't adjusted for price changes, we call it nominal GDP. For example, if real GDP in Year 1 = $1,000 and in Year 2 = $1,028, then the output growth rate from Year 1 to Year 2 is 2.8%; (1,028-1,000)/1,000 = . 028, which we multiply by 100 in order to express the result as a percentage. Is GDP growth rate real or nominal? Real GDP growth is the value of all goods produced in a given year; nominal GDP is value of all the goods taking price changes...