Let's say the GDP deflator, relative to 2010, you always have to know what you're taking your deflator relative to, is a 102.5 and this is, once again, the 2011 GDP deflator.

We know the deflator is, can we figure out the real GDP in 2011 and that will be the real GDP in 2010 dollars, when we have the deflator relative to 2010.

But either way, that's essencially what simplify too, this is our current dollar GDP, our nominal GDP dividing it by, what I would prefer to call the deflator, but you could use it as the deflator divided by 100 and that gave us a real GDP.

You just say Hey, let's take our current dollar GDP, divide it by the deflator, I guess you could say world deflated, to get the real GDP.

But we know the deflator, we know that things are gotten 102.5 more expensive or that deflator is a 102.5.

Our real GDP is equal to our current dollar GDP.

Let's say this is U.S. GDP, right? GDP is just output.

And on this axis, GDP.

Now that is the way that we know the nominal GDP is, the GDP measured in 2011 dollars,ofen called the current dollar GDP.

This is our real GDP, our real GDP is equal to 14 921.3 billion dollars.

Last in Europe GDP per capita.

And the way that it's calculated is, it's like the deflator, it's a price index, and like the deflator it's measuring a general increase or a general change in the level of prices.

Ghana and Singapore had the same GDP.

Cheap meaning a few percent of GDP.

15 ! 15 lift to Japanese GDP level.

So here's GDP per person in America.

But that's not how economists measure GDP.

Country A has surpassed Country B with 700 per capita GDP as compared with 650 per capita GDP.

That's not U.S. GDP per capita, which will be over a million, but world GDP per capita 200,000.

So we're thinking about GDP in a year but we could think about GDP in a quarter, whatever.

If I were in charge of naming macroeconomic concepts I would actually made this the deflator

That's just under the GDP of Great Britain.

So what would be the contribution to GDP?

GDP fell two percent this year. Good news!

But it tends to be..we always think of GDP in terms of annual or quarterly GDP or sometimes even some estimates of a monthly GDP but it tends to be annually or quarterly.

And this is GDP per capita on this axis.

Here is GDP per capita from 1900 to 1929.

So this is the more formal definition of GDP

Five percentage points of your GDP saved per year.

Zero price means zero weight in the GDP statistics.

Country A, in 1990, had about 300 per capita GDP as compared with Country B, which had 460 in per capita GDP.

So, you could have a GDP for a month you could have a GDP for a quarter of a year or you can be three months or you could have the GDP in a given year.

15 294.3 billion dollars divided by essentially the ratio between our deflator and the 100, divided by 1.025.

Let's say the 2011 nominal GDP is 15,294.3 billion dollars.

Our real GDP is what we want to figure out.

And then we can just solve for the real GDP.

So if you look at U.S. output This is GDP.

Let's say I don't know what's the GDP of Spain?

And the GDP in Africa is not making much progress.

Gross National Product, and that's the main difference. GDP says

Who has the biggest budget as a proportion of GDP?

In 2005, the Swiss government took 36 of the GDP.

You know, it looks at economic power measured by GDP.

China out perfomed India in terms of GDP growth by an average of about 2.2 percent every year in terms of per capita GDP.

Just to show you what we plotted, here is income, GDP