Economics Gdp Questions
The difference between GDP and GNP deflator weight lies in the composition of the two measures. GDP deflator weight refers to the weighting system used to calculate the average price level of all goods and services produced within a country's borders, regardless of the nationality of the producers. On the other hand, GNP deflator weight considers the weighting system used to calculate the average price level of all goods and services produced by a country's residents, regardless of where they are located. In essence, GDP deflator weight focuses on the production that occurs within a country's borders, while GNP deflator weight focuses on the production by a country's residents, regardless of location.