(Answered) GDP Deflator: Explain what it measuresGDP Deflator: Explain what it measures

➤ How is the GDP deflator calculated?
Calculate the GDP deflator as (Nominal GDP ÷ Real GDP) × 100. Nominal GDP uses current prices while real GDP uses a base-year price structure. The ratio shows aggregate price change and converts current-value output into base-year terms for a clear inflation measure.