GDP Deflator and The Economic Growth

 

      GDP deflator measures the overall price level of goods and services that are produced in a country's border within a specific period.


      GDP deflator is used to measure the general price level of goods and services that are included in GDP.


      GDP deflator is used  to measure inflation. It shows the overall change of price of goods and services in an economy.


     It helps to measure proper economic growth by removing the inflation effect.


     It helps to convert nominal GDP into real GDP


    Different economists and policy makers use GDP deflators to monitor Economic Stability.


     It helps to analyze inflationary pressure on economic growth and also it also helps to set a monitoring policy.

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