Economics Gdp Questions
The GDP deflator formula measures the average price level of all goods and services produced within a country, while the GNP deflator formula measures the average price level of all goods and services produced by the residents of a country, regardless of where they are located. In other words, the GDP deflator reflects the inflation rate within a country's borders, while the GNP deflator reflects the inflation rate experienced by a country's residents, regardless of where they are producing goods and services.