Economics Gdp Questions
The difference between GDP and GNP deflator is that GDP deflator measures the average price level of all goods and services produced within a country, while GNP deflator measures the average price level of all goods and services produced by the residents of a country, regardless of where they are located.
The formula for GDP deflator is:
GDP deflator = (Nominal GDP / Real GDP) * 100
Where Nominal GDP is the value of goods and services produced at current prices, and Real GDP is the value of goods and services produced at constant prices. The GDP deflator is used to adjust nominal GDP for inflation and calculate the real GDP, which reflects changes in the quantity of goods and services produced.