Categories: Macroeconomics

Real GDP, Nominal GDP and GDP Deflator

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GDP Deflator

GDP deflator is also called the implicit price deflator for GDP is the ratio of Nominal GDP to real GDP.

Now the GDP deflator measures the price of Output relative to its price in the base year. Which like I said before would tell us whether it’s the production or inflation or is it both of these that is increasing the level of GDP.

 

 

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Marjan Arbab

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