the gdp price index is calculated by

GDP does not include several factors that influence the standard of living. However, GDP as measured by current prices does not measure the growth of real GDP, since prices depend on the money supply, which varies independently of GDP from year to year. Total GDP can also be broken down into the contribution of each industry or sector of the economy.The history of the concept of GDP should be distinguished from the history of changes in ways of estimating it. For example, suppose a country's GDP in 1990 was $100 million and its GDP in 2000 was $300 million. To simplify comparisons, the value of the price index is set at 100 for the base year.

To make it more meaningful for year-to-year comparisons, it may be multiplied by the ratio between the value of money in the year the GDP was measured and the value of money in a base year.
For measuring output of domestic product, economic activities (i.e.

Suppose also that inflation had halved the value of its currency over that period. The second way of estimating GDP is to use "the sum of primary incomes distributed by resident producer units".If GDP is calculated this way it is sometimes called gross domestic income (GDI), or GDP (I). Measurements of national income are subject to this type of illusion and resulting abuse, especially since they deal with matters that are the center of conflict of opposing social groups where the effectiveness of an argument is often contingent upon oversimplification. Nominal GDP is the GDP measured by actual prices, which are unadjusted for inflation. According to the U.S. Bureau of Economic Analysis, which is responsible for calculating the national accounts in the United States, "In general, the source data for the expenditures components are considered more reliable than those for the income components [see income method, above]. Within each country GDP is normally measured by a national government statistical agency, as private sector organizations normally do not have access to the information required (especially information on expenditure and production by governments). Another method of calculating real GDP is to enumerate the volume of output, then multiplying that volume by the prices of the base year. If a country's GDP doubled over a certain period, but its population tripled, the increase in GDP may not mean that the standard of living increased for the country's residents; the average person in the country is producing less than they were before. "GDP is product produced within a country's borders; GNI is product produced by enterprises owned by a country's citizens. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies. GDP can be determined in three ways, all of which should, theoretically, give the same result.
However, it is not the same thing as the consumer price index (CPI). "How To Judge Quality".

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