Respuesta :
This implies that the price level has increased by 100% compared to the base year
The GDP price index is determined by dividing Nominal GDP by Real GDP and then multiplying the answer by 100.
GDP price index = 200/ 100
= 2 x 100
= 200
The base year is 100, so the price level increased by 100%
Like the CPI, the GDP price index tracks changes in prices for consumer products and services as well as for goods and services bought by corporations, governments, and foreigners.
Real GDP is a metric that takes inflation into account and examines the rate at which all goods and services are produced in a nation for a specific year. It is referred to as a fixed cost price and is indicated in foundation year prices. It is also referred to as GDP at constant prices or GDP adjusted for inflation.
When we talk about the nominal gross domestic product, we're talking about GDP calculated using today's market values. GDP measures the monetary worth of all the goods and services a nation produces. The difference between nominal and real GDP is that the former excludes changes in prices brought on by inflation.
Learn more about Real GDP here:
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