Economics Real Vs Nominal Gdp Questions
The difference between GDP and GNP deflator growth rate per capita lies in the measurement and focus of each indicator. GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders, regardless of the nationality of the producers. On the other hand, GNP (Gross National Product) measures the total value of goods and services produced by a country's residents, regardless of where they are located.
The GDP deflator is a measure of the overall price level of goods and services produced within a country, while the GNP deflator measures the overall price level of goods and services produced by a country's residents.
The growth rate per capita refers to the rate at which these indicators are increasing or decreasing on a per-person basis. It takes into account the population growth or decline of a country.
Therefore, the difference between GDP and GNP deflator growth rate per capita is that GDP deflator growth rate per capita focuses on the price level of goods and services produced within a country's borders on a per-person basis, while GNP deflator growth rate per capita focuses on the price level of goods and services produced by a country's residents on a per-person basis.