(Answered) Real GDP is computed by adjusting nominal GDP for:Real GDP is computed by adjusting nominal GDP for:

➤ When should I use the GDP deflator versus the CPI to adjust GDP?
Use the GDP deflator to convert nominal GDP into real GDP because it measures price changes for all domestically produced goods and services. Use the CPI for consumer cost-of-living adjustments and inflation affecting households. The two indices differ in coverage, weighting, and inclusion of imported goods, so choose based on the analytic purpose.