Social Sciences and History / Unit 14 SSH 1309 short lesson, about 20 seconds
Nominal to Real: The Price Index
Captions available
The idea
The nominal value of a statistic is the announced value; the real value is adjusted for inflation. To convert several years' nominal data, choose a base year and use a price index to express each year in the base year's money.
In practice
Nominal up eight, prices up five: real about three.
Where people slip
Real growth is the exam's growth.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it