real vs nominal

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Real vs Nominal Taylor & Min LLC. 09/22/2012

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Page 1: Real vs Nominal

Real vs Nominal

Taylor & Min LLC.09/22/2012

Page 2: Real vs Nominal

2nd Highest Grossing Film

How can Titanic can be #2… What about the very first Star Wars movie…

Page 3: Real vs Nominal

Nominal Ranking

Look at the “nominal” gross movie ranking at http://www.the-movie-times.com/thrsdir/alltime.mv Again, where is Star Wars…

Page 4: Real vs Nominal

Real Ranking

Look at the “real” gross movie ranking at http://www.the-movie-times.com/thrsdir/alltime.mv Be sure to “adjust for inflation”…

Page 5: Real vs Nominal

Adjustment

To adjust for inflation, you need to multiply the number of estimated number of tickets sold by the average ticket price of the year (e.g. index year) you are converting to…

Page 6: Real vs Nominal

Objective & Discussion

Understand the difference between real andnominal measures…

What is the difference between nominal andreal GDP or Income?

What is price index?

What adjustment is made to transform nominalmeasures into real terms?