GDP Deflator = Measure of Inflation? (LOS 16c)
I was confused about the following phrasing:
“The implicit GDP deflator is an important measure of the overall price level in the economy, and changes in the deflator provide an important gauge of inflation within the economy”
Isn’t the deflator itself a measure of inflation, and isn’t therefore a change in the deflator an indicator of a change in inflation?
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.