GDP DEFLATOR #Inflation This is the ratio between GDP at C | UPSC Economy
GDP DEFLATOR
#Inflation
This is the ratio between GDP at Current Prices and GDP at Constant Prices.
If GDP at Current Prices is equal to the GDP at Constant Prices, GDP deflator will be 1, implying no change in price level.
If GDP defator is found to be 2, it implies rise in price level by a factor of 2, and if GDP defator is found to be 4 , it implies a rise in price level by a factor of 4.
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