Economics Gdp Questions
The difference between GDP and GNP deflator is that GDP deflator measures the overall price level of all goods and services produced within a country's borders, while GNP deflator measures the overall price level of all goods and services produced by a country's residents, regardless of where they are located.
On the other hand, the GDP deflator base year refers to the specific year chosen as a reference point for calculating the GDP deflator. It is used to compare the current price level to the price level in the base year, allowing for the calculation of real GDP, which adjusts for inflation.