Converstion of nominal GDP into real GDP?
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To deal with this issue, a "fudge factor" called the GDP deflator is used to convert Nominal GDP (GDP with the effects of inflation) into Real GDP (GDP without the effects of inflation). Nominal GDP is divided by the GDP deflator to get Real GDP.
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GDP deflator is used to convert Nominal GDP (GDP with the effects of inflation) into Real GDP (GDP without the effects of inflation). Nominal GDP is divided by the GDP deflator to get Real GDP.
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