Plzen wrote:SangMar wrote:But yes, I found the figure on some website that puts a bunch of different figures out. It was in “chained-dollars” (Whatever that means) and dated back to 2009.
Chained dollars are intended to be adjusted for inflation. It means the same thing as real dollars. If your source was chained to 2009 dollars, then that means figures are expressed in 2009 prices.
Basically, think about it this way. Imagine that you have an economy that produces only apples. In 2009, an apple was worth $1, and your income is $2. Now imagine that ten years later, apples are now $2, and your income is $6.
Your nominal income (also sometimes called income in current currency) is whatever you earn this year, which is $6. Your real income in 2009 dollars (also sometimes called chained to 2009) is $3, because your current income buys three apples now, and three apples was $3 back in 2009.
Thanks.
How do I calculate the GDP while incorporating population growth?