The GDP deflator is a measurement of inflation since a base year. Dividing the nominal GDP ... approach and calculated using the following formula: GDP = C + G + I + NX (where C=consumption ...

Real GDP takes inflation into account by converting the nominal figure using a constant value of money from a past base year (called a GDP deflator ... most famous GDP formula uses the expenditure ...

Gross Domestic Product measures the quantum of economic activities in a country, in monetary terms, over some time, usually one year. Real GDP eliminates the impact of inflation by applying a deflator ...

For example, if prices rose by 5% since the base year, then the deflator ... of GDP since it increases the productive capacity of an economy and boosts employment levels. The net exports formula ...