What's GDP Deflator supposed to mean?
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What's GDP Deflator supposed to mean?
The GDP deflator is a measure of inflation that reflects the changes in prices of all goods and services produced in an economy. It is calculated by dividing the nominal GDP (which is the total value of all goods and services produced in an economy at current prices) by the real GDP (which is the total value of all goods and services produced in an economy at constant prices). The resulting ratio represents the price level of the economy relative to a base year. The GDP deflator is used to adjust nominal GDP for inflation, providing a more accurate measure of economic growth.
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