ECONOMICS

Economics



Economics

GDP Deflator reflects prices of all goods and services produced within the country, whereas CPI reflects the prices of a representative basket of goods and services purchased by the consumers. On the other hand CPI uses a fixed basket of goods and services whereas the GDP deflator compared the price of currently produced goods relative to price of goods in the base year.

Real GDP is nominal GDP adjusted for price-level changes (inflation). Real GDP is calculated in relation to a base year. Nominal GDP is adjusted for price-level changes between the base year and the current year through the application ...