Define GDP deflator?

1.	Define GDP deflator?
Answer» GDP is the total market value of final goods and services produced within the country during a year. This is calculated at market prices and is known as GDP at market prices. Thus GDP by expenditure method at market prices = C + I + G + (X – M) Where C – consumption goods; I – Investment goods; G – Government purchases; (X – M) is net export which can be positive or negative.

Answer»

GDP is the total market value of final goods and services produced within the country during a year. This is calculated at market prices and is known as GDP at market prices. Thus GDP by expenditure method at market prices = C + I + G + (X – M)

Where

C – consumption goods;

I – Investment goods;

G – Government purchases;

(X – M) is net export which can be positive or negative.

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Define GDP deflator?

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