<p>My professor gave us two formulas for GDP for 2012 in 2010 dollars:</p>

<p><code>y = P1 (2010) * Q1 (2012) + P2 (2010) * Q2 (2012) ...</code></p>

<p>And:</p>

<p><code>y = x1 / (1 + inflation rate 2010 to 2012)</code></p>

<p>Where <code>x1</code> is the nominal GDP for 2012. Do those formula produce the same result? If not, under what assumptions are they close to one another? Which one is used by governments to calculate GDP figures?</p>

CC BY-SA 3.0
2015-09-12T23:50:39.050Z
I'm voting to close this question as off-topic because this seems like a simple homework problem with no effort shown.
Giskard
CC BY-SA 3.0
2015-09-12T23:54:37.170Z
@denesp It's actually not a homework problem. When I asked the professor, he didn't understand my question (English isn't his first language), so I thought I'd ask here. I tried searching google and couldn't find an answer; maybe I was searching the wrong thing.
sinθ
CC BY-SA 3.0
2015-09-13T02:39:52.827Z
I see. Looking up indeces, especially the Paasche price index may prove useful. https://en.wikipedia.org/wiki/List_of_price_index_formulas
Giskard
<macroeconomics><gdp>
Two ways of calculating real GDP: do they produce the same result?
sinθ
# Two ways of calculating real GDP: do they produce the same result?

(Asked by: username_0 on 2015-09-12)

My professor gave us two formulas for GDP for 2012 in 2010 dollars:

`y = P1 (2010) * Q1 (2012) + P2 (2010) * Q2 (2012) ...`

And:

`y = x1 / (1 + inflation rate 2010 to 2012)`

Where `x1` is the nominal GDP for 2012. Do those formula produce the same result? If not, under what assumptions are they close to one another? Which one is used by governments to calculate GDP figures?

**Tags:** macroeconomics, gdp

> **Comments:**
> **username_1**: I'm voting to close this question as off-topic because this seems like a simple homework problem with no effort shown.  
> **username_0**: @denesp It's actually not a homework problem. When I asked the professor, he didn't understand my question (English isn't his first language), so I thought I'd ask here. I tried searching google and couldn't find an answer; maybe I was searching the wrong thing.  
> **username_1**: I see. Looking up indeces, especially the Paasche price index may prove useful. https://en.wikipedia.org/wiki/List_of_price_index_formulas  

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