How to Calculate the GDP Deflator | Think Econ

In this video I'll show you how to calculate the GDP Deflator and then use it to calculate inflation or the increase in price level between and two given years.
How to Calculate Real GDP:
• How to Calculate Real ...
How to Calculate Nominal GDP:
• How to Calculate Nomin...
How to Calculate CPI:
• What is the Consumer P...
and
• How to Calculate the I...
What is inflation?:
• What is Inflation? | H...
#economics #GDPDeflator #macroeconomics #inflation
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[@ThinkEcon]

If you found this video helpful, like the video and consider subscribing to the channel to see more educational economic videos! Have a great weekend! :)

[@showersongsgaming4829]

It blows me away how much easier it is to learn from a really well-made, free video such as this one than it is from college course study material you have to pay thousands of dollars for. Even more impressive is how much more quickly you explained it too, which makes online classes a breeze, so huge thanks for making this video!

[@ThinkEcon]

Love the encouraging feedback, and am really glad you’re finding the videos helpful!

[@faithfortune5303]

wawww ur a blessing!!! i was so confused when my teacher was teaching it but i understood this in 1 go!

[@ThinkEcon]

Glad it helped!

[@user-fj1ng7xf4y]

you are carrying me through econ classes tysm

[@ThinkEcon]

I gotchu 😤

[@abbieamavi]

life saver!! super simple, clear, and helping me pass my Econ class! thank you 😀

[@ThinkEcon]

You're very welcome!

[@natashajoyy4223]

Great video ! Would love exam style questions

[@christosalexopoulos5329]

thank you so much man, I saw some of your other videos as well you helped me so much and in very short time!!!

[@ThinkEcon]

I'm glad to hear that!

[@sweetyrhoda8383]

So simplified and understandable

[@ThinkEcon]

Glad it was helpful! :)

[@bzuwerkgadissa1483]

Thank you!

[@ThinkEcon]

You're welcome!

[@RedaTamanine]

Very useful video thank you

[@ThinkEcon]

You're very welcome!

[@sakhan9483]

Very nice explanation

[@ThinkEcon]

Glad you found it helpful! :)

[@glennwatson3313]

Nice Job.

[@mtambalikaphiri2448]

How can I tell whether the percentage found is an increase or decrease?

[@ThinkEcon]

The percentage will be positive for an increase, and negative for a decrease. You can also look at if the new deflator is larger or smaller than the old one. If it's larger, like in the example in this video, then the percentage will be positive, therefore an increase; and vice versa. Hope this helps!

[@temesgenkibret7860]

Nice vidio education

[@ThinkEcon]

Thanks! :)

[@saritachoudhary4914]

Why multiple 100 in GDP deflator formula

[@stickylink6462]

Can you find gdp deflator of a base year?

[@ThinkEcon]

You can find the Base Year if given the Deflator and another year’s GDP, if that’s what you’re asking?

[@sekousmiley9765]

I'm sorry but I'm a little confused. I've been watching videos to better understand how to calculate real GDP in a real economy. In almost all videos, they say that you need nominal GDP and GDP deflator to calculate real GDP. At the same time, to calculate GDP deflator, you need nominal GDP and real GDP. Isn't there another formula to calculate GDP deflator? Because if I need GDP deflator to calculate real GDP, then there must be another way to calculate GDP deflator than using nominal GDP and real GDP. Right? Please help me understand this 🙏

[@ThinkEcon]

I think this video will help you. kzbin.info/www/bejne/nF7QfYqQqMSgja8 It shows how to calculate Real GDP which does not require the Deflator. Let me know if you're confused after watching!

[@sekousmiley9765]

​@ThinkEcon Thanks for the link. I watched the video and similar videos as well. In that video you calculated the real GDP in a very simple way with 4 or 5 products in the market. I totally understand your explanation it was very clear. However, what I'm having trouble with is how real GDP is calculated in the real economy with millions of goods and services. Unless I am mistaken, in the real economy (like that of the USA for example), nominal GDP is always calculated first and a formula is used then to adjust the inflation in a way of calculating the real GDP. What I want to know is that formula used to get the real GDP using the nominal GDP. If the GDP deflator is used in that formula, then there should logically be a way to calculate it without requiring to know the value of real GDP since the latter is what we are trying to calculate ultimately. I hope you understand my question 😢