The GDP deflator is a measure of the price level of goods in the GDP. it includes capital goods and goods and services purchased by the government. It does not include the same goods each year. GDP Deflator= Nominal GDP/ Real GDP*100
420/350*100= 120
GDP Deflator in Base year will always be 100. There was a 20% increase in inflation since the base year.
Dr. Stephanie Powers, "Economic Growth".(Lecture, Donald School of Business, Red Deer Alberta, Winter 2012)
The GDP deflator is a measure of the price level of goods in the GDP. it includes capital goods and goods and services purchased by the government. It does not include the same goods each year.
GDP Deflator= Nominal GDP/ Real GDP*100
420/350*100= 120
GDP Deflator in Base year will always be 100. There was a 20% increase in inflation since the base year.
Dr. Stephanie Powers, "Economic Growth".(Lecture, Donald School of Business, Red Deer Alberta, Winter 2012)