Real GDP and nominal GDP | GDP: Measuring national income | Macroeconomics

Real GDP and nominal GDP | GDP: Measuring national income | Macroeconomics | Khan Academy

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12 жыл бұрын

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Using real GDP as a measure of actual productivity growth
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Пікірлер: 168

@aguarnes 5 жыл бұрын

You lost me after apples

@lolot9169 5 жыл бұрын

actually, that technic, even if the example was with apples or bananas or PCs, is so efficient and gives you the main idea of what Real GDP is so simple!

@magsterz2389 5 жыл бұрын

I'm lost laughing after your comments.

@ImmanuelSpirit 5 жыл бұрын

😂😂

@lashgash2937 4 жыл бұрын

Watch it again bro. It will make sense in a while trust me

@nahirtorres82305 Жыл бұрын

I know it's been 4 years since you commented, but I would like to explain what I understood just to be clear: Nominal GDP is the amount (in dollars) made in sales of a product THAT SAME YEAR. Real GDP is the amount made in sales of a product, BUT using the price of the BASE YEAR, not THAT SAME YEAR's price. So with the apples example, let's say that 10 apples were sold in year 1 (aka base year) for $1 each; the nominal GDP (and real GDP for that matter) is $10 because 10 apples for $1 each is $10 dollars. NOW, let's say that in year 2, we sold 20 apples for $2 each. The nominal GDP for year 2 would be $40 because 20 x 2 = 40. BUT the real GDP would be calculated using year 2's qty sold times year 1's price. So multiply 20 x 1 (year 2's qty sold times year 1's price) and that would give you $20 as real GDP for year 2. Someone with expertise on this, am I correct?

@fiskylulany4179 5 жыл бұрын

just spent my last 5 weeks sleeping in and out in class and now my midterms test is in a week. this will save me from failing my macroeconomics class i know it

@hazylazyjazy4729 3 жыл бұрын

did you fail?

@fiskylulany4179 3 жыл бұрын

HazyLazyJazy no i didnt :D this video saved me :D

@MRK1sauce 3 жыл бұрын

@@fiskylulany4179 taking econ right now and I'm not as confident lol

@skylimits4839 23 күн бұрын

@@MRK1sauce3 years later we need an update

@compulsi0n 11 жыл бұрын

Shooting for that A+ on the 1st year Macro Econ midterm tomorrow, and I'm a C student. Made possible by the one and only Khan.

@yessir1908 4 жыл бұрын

Miguel Branco kind of funny since I’m doing so tomorrow, 6 years after you did.

@alexreid2393 4 жыл бұрын

Vince Oubre So apples don’t need to be sold in order for it to count right? They just need to “exist” per day?

@danmccarthy607 3 жыл бұрын

i am also doing so tomorrow...

@jacobrobinson2090 3 жыл бұрын

@@yessir1908 and then theres me, 7 years after him, and one year after you writing the test over a zoom call.

@slamazu9232 2 жыл бұрын

@@jacobrobinson2090 and then there's me 9 days later about to take my econ midterm in 2 hours and i know like nothing lmao

@divyarajsingh6914 6 жыл бұрын

Really....this has become my last and ultimate resort to clear my concepts..thank u from core of my heart.

@317andrew317 10 жыл бұрын

Thank you so much Kahn! You explained it so much better than my macro book. They want us to use some stupid price index shit which is confusing, thanks again mate!

@bbcali5989 6 жыл бұрын

Clear and concise. Thank you for explaining so well!

@purplesky99876 9 жыл бұрын

Nnnooow I'm starting to understand it better. Gonna watch the whole series so I can ace this test. Thank you as always.

@WILMERRAPOZO 8 жыл бұрын

I had an idea but some doubts. Your explanation solidified my understanding. Thanks a bunch for taking the time to make this video. I wish those who did not like "like" on the video would explain what they see wrong with this video.

@vixonjoycemonk3920 8 жыл бұрын

Brilliant, thank you so much, made that a lot clearer :) 3 hours and a bit till my exam and been up all night :)

@jeev_15 Жыл бұрын

This is extremely helpful! Finally, I find a wonderful explanation that i can understand well. Thank you so much!

@ByOakk 8 жыл бұрын

thanks you are really good at explaining the difference! i have a test tommorow fml

@ByOakk 8 жыл бұрын

passed thanks man aha, this video saved me

@saraOTB 8 жыл бұрын

Thank you so much!! This is by far the best explanation of real GDP and nominal GDP!

@nirajcit 8 жыл бұрын

Exactly, what a awesome explanation. You are legend. Thank you very much.

@uttamo7 12 жыл бұрын

@cheddyrod this is a really simple example. we could also say its gdp depends on foreign relations, price of oil, UN regulations etc... this is a simplified example to help you understand the basics.

@ayjay10016 8 жыл бұрын

I am so much in debt to you for teaching me so much! :)

@powerslave6944 9 жыл бұрын

Wow thanks for explaining that, I have always wonder what's the difference between Nominal and Real GDP means

@rushabhrajput2272 6 жыл бұрын

Khan Bhai Thank you so much now I am cleared with Real and Nominal GDP.

@doreendzimuuzani7180 3 жыл бұрын

Thanks for your explanation

@kanwarzzz 2 жыл бұрын

Thanks sir ! For explaining in such a simple manner!

@Tasha14s 3 жыл бұрын

This was crazy helpful. Thank you!

@JohnJackson-yh8ow Жыл бұрын

This video was wonderful for me thank you so much

@SaraAhmed-ph5qg 7 жыл бұрын

I love this guy when I hear his voice I know am passing at least with an -A❤ much respect

@mohsanahmad8115 6 жыл бұрын

he does have a nice voice

@reggie1078 9 ай бұрын

He's sal khan, the owner of khan academy

@SuperRomil123 9 жыл бұрын

Very nice way of explaining the concepts.

@Doodsome 12 жыл бұрын

cheers, mate. makes total sense. Imo the real growth is the only thing that matters. Unfortunately ppl keep forgetting that.

@nicolewatterson3894 Жыл бұрын

THANK YOU SIR ! 😌

@SistaLee1978 8 ай бұрын

Thanks for Sharing. It helps alot

@MultiCesman 11 жыл бұрын

thank you. there is no other like you

@rebeccaupputholla6515 9 жыл бұрын

Wow, that was helpful, thanks!

@bagondreamer 8 жыл бұрын

the axis should be switched: quantity as x and price as y

@lx3469 4 жыл бұрын

David McKee for all diagrams I draw in economics we do price on the Y axis, quantity on the X.

@not_hiro_ 4 жыл бұрын

@David McKee Direct relation of quantity to price

@OMEN_meme 3 жыл бұрын

In econ we take indepent variable at y and dependent at x

@samuelmalsawmzuala1109 3 жыл бұрын

This doesn't matter, as long as the diagram are adjusted so that they give the same result. It's like writing commodity X on Y axis, and commodity Y on X axis; there are no rigid rule to it. Even in mathematics, though there are certain rules, it doesn't matter the way you solve the problem as long as you obey the law of mathematics as you yield the same answer.

@mitchdrxms 10 жыл бұрын

This is amazing!

@blackstone589 3 жыл бұрын

Thank you. I finally get it.

@dawsonwalters2512 6 жыл бұрын

Thank you!

@parthvats7781 6 жыл бұрын

awesome very good representation by graph

@SalsaTiger83 12 жыл бұрын

@NZSideways8 no, that's not because of black background. It's because the video compression tries to encode only the changes. In these screencasts of an image painting program, virtually nothing changes from frame to frame, making this extremely efficient. The codec mostly only has to update the area under the tablet pointer. The same would be true for images with solid white background or even photos in the background.

@butusmar 6 жыл бұрын

Please advise: What does it mean when we have a decrease in Nominal GDP and a increase in real GDP both compared the year before? Thank you.

@EricPham-gr8pg 2 ай бұрын

Thank you very much...

@yagnanarayana6322 4 жыл бұрын

Nice explanation

@shrutis2001 3 жыл бұрын

Thank you so much.very helpful

@Tyger_Tyger 3 жыл бұрын

Awesome! Thank you.

@user-hg1ww1dv4k 8 ай бұрын

Khan love you and your videos I appreciate all the help you have given me!

@gl2461 5 жыл бұрын

i finally understand for real!

@lolaloliepop 12 жыл бұрын

@kaushiksays dude, this is what you would have to do in an economics course. It's meant to demonstrate a concept of one part of what would happen in the real world.

@delizcarol 10 жыл бұрын

Finally understand it. Thanks

@turkishcollector8419 2 жыл бұрын

Thanks, this was useful.

@bubascary 8 жыл бұрын

Brain goes oooooooooh, thankyou!

@MsSimixx 10 жыл бұрын

That measures inflation, and it is simple. It just asks you to see inflation as percentage. It is important. Real GDP and Nominal GDP and Index measures are 2 different things.

@aristides193 4 жыл бұрын

i love khan academy

@raritycodm479 2 жыл бұрын

Amazing explanation

@444zane3 12 жыл бұрын

hey khan, can you do a video or 2 on 3d graphing basics please? thanks

@hide3518 7 ай бұрын

thanks mr khan

@sirishchandra9089 Жыл бұрын

Helpful

@soursdeychhun7482 9 жыл бұрын

thank you so much I can understand more than my teacher explain me lol

@thenewculture2359 3 жыл бұрын

Sal Khan is my hero

@ckphurailatpam865 3 жыл бұрын

Would you guys consider starting a video series for teaching for UPSC exam preparations in India?

@dankbot420 12 жыл бұрын

What software are you using?

@neginsadatnafe6597 4 жыл бұрын

So which gdp is our reference to see how much it increase for a certain year

@koutaroubokuto9922 3 ай бұрын

Genuinely about to cry… This explains much more better.

@jjake67 12 жыл бұрын

i like it

@lashgash2937 4 жыл бұрын

I understood it. That's Kahan academy

@amiraboodi2075 5 ай бұрын

Excellent 👌👍❤

@MrGeocidal 5 жыл бұрын

Is year 1 always the year in which the country was founded? How do you compare real GDPs from countries that were founded in different years? As more inflation would occur in 200 years than 50 years.

@TheMagdielzuniga 12 жыл бұрын

Playlist is titled "Microeconomics and Macroeconomics"

@BenMousavi 5 жыл бұрын

You legend brother

@CiaoBello21 12 жыл бұрын

He is King Khan.

@NZSideways8 12 жыл бұрын

I dont know if many people notice, but the fact that most of these videos are black makes them really small, the 720p version of this is only 14MB - crazy. My point is that it makes them easy to stream on low bandwidth plans.

@lolaloliepop 12 жыл бұрын

@MATH7660 you could use any photoshop or photoshop elements and then your tablet.

@BlackDeath12345 12 жыл бұрын

PLEASE MAKE MORE MACRO ECON VIDEOS I NEED TO GET A GOOD GRADE IN THIS CLASS bengali 4 lyfeeee

@LightningAlchemist7 12 жыл бұрын

nice video

@harshmnr 8 жыл бұрын

Thank you! :)~:~

@memorylane7531 2 жыл бұрын

But you did not show us how the calculation of nominal GDP should be done as?

@107chewy 2 жыл бұрын

Price should be at Y axis and Quantity at X axis.

@duenaya 12 жыл бұрын

if what you care about is the change in totoal quantity(the whole point o f nominal GDP), why don't you measure and compare the quantity in gross production of both years in the first place??

@mesbahemami3589 5 жыл бұрын

So why many countries GDP is much higher than GDP nominal?! As you said GDP nominal should be higher...

@MartinusTothus 7 жыл бұрын

Im not sure why, but that calculator made me laugh :D

@jamesng5083 7 жыл бұрын

i wonder why we dont take gdp y2/inflation rate?

@veronicaleung7615 8 жыл бұрын

I actually understand it... incredible! :D

@mishallaneous Жыл бұрын

Is there a rule for whether we use p2 or q2? I’ve seen some use p2 and others use q2 but I don’t see why

@mishallaneous Жыл бұрын

Is it depending on whether you want to measure by quantity or prices?

@dollyandsandy 7 жыл бұрын

This is fantastic. Thank you.

@akuma9940 4 жыл бұрын

why q2 would multiply p1????

@NZSideways8 12 жыл бұрын

@SalsaTiger83 Oh yes, thats what I was meaning (how its all black) but yep thats explained better.

@q2009399q 7 жыл бұрын

Thanks for your great explanation. You make it easier

@kennethkey7401 4 жыл бұрын

What are the answers

@CapeSIX 12 жыл бұрын

y is this in yours microeconomics videos? this is macro

@nicolemvargas 7 жыл бұрын

This was extremely helpful!

@ageddull 11 жыл бұрын

should be 2181 lb of apples, cause technically 0.8 of an apple isn't an entire apple sold. great video tho, keep up the good work :D

@prosperking850 8 жыл бұрын

@khan academy. How can I get that calculator you're using? And what is the name of it?

@zuesr3277 8 жыл бұрын

You can get webbitemu.

@cheddyrod 12 жыл бұрын

Aren't you assuming that the quality of apples are the same? Does that make a difference?

@aureliusparrish7188 4 жыл бұрын

If your here looking for the definition nominal gdp is just the market value of goods and services made in the economy and is unadjusted for inflation, and real gdp is nominal gdp juss adjusted for inflation. SIMPLE ANSWER YOUR WELCOM

@TheStuckMillennial 10 жыл бұрын

Would this level of economics be considered (senior) high school/ first semester of Uni type of work?

@Ygnez 10 жыл бұрын

high school

@GiddyGherkin 10 жыл бұрын

both. In this case economics the info are bascially the same for uni and highschool. Uni cover highschool related subjects and sometimes they build on it.

@uozouozo 8 жыл бұрын

real help sir ~~

@Jimjimmy0102 3 жыл бұрын

What if the price increase of apples were actually due to better quality or larger apples? What if we dealing with iphone 10 vs iphone 11? What about services, if we had a price increase due to improvement of services?

@nik4546 2 жыл бұрын

The reason why prices increase is usually due to better quality or quantity. GDP calculates total market values of good and services; we can measure if it increased or decreased, not why. In this case, that extra 91$ might be because of quality, not necessarily quantity. Hope I helped.

@simranwadhwani631 7 жыл бұрын

Awsummm explanatn sir Thnk uhh soo much Was really helpful

@kingtigercrownestate9102 Жыл бұрын

Okay let's assume that the price of apples increases for inflation but the output (quantity) remains exactly the same in the following year.

@benwetherbee 10 жыл бұрын

Mmmmm TI-85 Rom... Would it be accurate to measure this against the population? In my mind it would be similar to an artificial interest gain in a bank account where that interest is actually lower than inflation in currency. Say you made $50 one year on an account with $20,000, but inflation for that year was 1.7%. Effectively, you've still lost money. The point would be that even if production goes up, it could and probably does go down per capita.