Question

What is meant by GDP deflator?​

Answer 1

Explanation:

The GDP deflator, also called implicit pricedeflator, is a measure of inflation. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year.

Answer 2

➣ AnSwer :-

⟹ GDP Deflator :-

• The GDP price deflator expresses the extent of price level changes, or inflation, within the economy.
• The GDP measure that takes inflation into consideration is called the real GDP.
• So in the example above, the nominal GDP for year two would be $12 million while real GDP would be $11 million.