Question

Define GNP deflator?

Answer 1

The GNP is a price index that is used to adjust GNP for inflation .GNP is measure of national income .It is the market value of all goods and services created in given year.


Hope it helps u

Answer 2

GNP Delflator

Explanation:

• The GNP deflator helps in adjusting the price index of the GNP for inflation.  

• It is important to do this because you need to adjust GNP for inflation to calculate real GNP.  

• GNP adjusted for inflation is the real GNP.

• National income is calculated over GNP(Gross National Product).

• The formula to calculate GNP Deflator :

        GNP Deflator = (Nominal GNP)/(Real GNP) × 100