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How to calculate GDP deflator?

How to calculate GDP deflator? The GDP deflator is used to measure changes in the prices of goods and services included in domestic production. How do you calculate the GDP deflator, and how is it different from other measures of inflation such as the Consumer Price Index?

How to calculate GDP deflator?

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@Bryce replied to Charity
3 days ago

The GDP deflator is a measure of the overall price change in an economy. It is calculated using (Nominal GDP / Real GDP) x 100. For instance, in case the nominal GDP is $500 billion while real GDP is $400 billion, then the deflator will be 125.
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@Steve replied to Charity
3 days ago

The GDP deflator measures changes in overall prices. Calculate it using GDP Deflator = (Nominal GDP ÷ Real GDP) × 100. For example, if nominal GDP is $600 billion and real GDP is $500 billion, the GDP deflator is 120, indicating higher prices.