GDP deflator

CFA Level I
#1

What do you mean by GDP deflator?

#2

GDP deflator can be used to calculate real GDP: Nominal GDP/GDP deflator x 100 = Real GDP

#3

How is this determined?

#4

varundarji Wrote: ------------------------------------------------------- > How is this determined? why does it matter, just know the formula

#5

So we know when they lie! Larger GDP than ‘real’ = good. Think of deflating the value or cost of inputs into the calculation of GDP due to things other than price increases.