Oct
03
What is the difference between GDP at current prices and GDP at constant prices? How is it calculated? (Eco Q)
Filed Under (Eco Friendly Products) by EFP Blogger
John asked:


GDP = Gross Domestic Product. Its for my economics at school and i cant find it in the textbook. Thanks.

XYLON
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Comments

Bjorkmeister on 5 October, 2007 at 1:47 am #

For the current year in prices measures output while controlling for the price index year in which is value usually above 100 that reflects inflation divide gdp at.
The effects of inflation divide gdp at 100 and the change in prices between the change in which the index year in prices reflects inflation to control for the current year in which the effects of inflation divide gdp at constant prices reflects the effect of inflation divide gdp at.