{"id":71334,"date":"2020-12-01T11:33:51","date_gmt":"2020-12-01T06:03:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=71334"},"modified":"2020-12-01T11:33:51","modified_gmt":"2020-12-01T06:03:51","slug":"nominal-gdp-and-real-gdp-and-gdp-deflator","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nominal-gdp-and-real-gdp-and-gdp-deflator\/","title":{"rendered":"Nominal GDP and Real GDP and GDP Deflator"},"content":{"rendered":"<p><strong>What is Nominal GDP and Real GDP ? and\u00a0<span class=\"TextRun SCXW58787449 BCX0\" lang=\"EN\" xml:lang=\"EN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW58787449 BCX0\">What is GDP Deflator?<\/span><\/span><span class=\"EOP SCXW58787449 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/strong><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">Nominal GDP<\/span><\/b><span data-contrast=\"auto\">\u00a0refers to the\u00a0<\/span><b><span data-contrast=\"auto\">current year production\u00a0<\/span><\/b><span data-contrast=\"auto\">of final goods and services\u00a0<\/span><b><span data-contrast=\"auto\">valued at current year prices<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Real GDP<\/span><\/b><span data-contrast=\"auto\">\u00a0refers to the<\/span><b><span data-contrast=\"auto\">\u00a0current year production<\/span><\/b><span data-contrast=\"auto\">\u00a0of goods and service\u00a0<\/span><b><span data-contrast=\"auto\">valued at base year prices. Base year prices are constant prices<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Currently, the\u00a0<\/span><b><span data-contrast=\"auto\">base year for GDP calculation is 2011-12.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<ul>\n<li><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">What is GDP Deflator?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">The ratio of nominal to real GDP is a well-known index of prices. This is called GDP deflator.\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">GDP Deflator = Nominal GDP\/ Real GDP<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">\u00a0<\/span><\/b><b><span data-contrast=\"none\">The GDP deflator is, therefore, a measure of inflation. If GDP deflator is 2, then it means prices are doubled as compared to base year. The GDP deflator is considered the better measure of price behavior because it covers all goods and services produced in the country.\u00a0<\/span><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Nominal GDP and Real GDP ? and\u00a0What is GDP Deflator?\u00a0 Nominal GDP\u00a0refers to the\u00a0current year production\u00a0of final goods and services\u00a0valued at current year prices.\u00a0 Real GDP\u00a0refers to the\u00a0current year production\u00a0of goods and service\u00a0valued at base year prices. Base year prices are constant prices.\u00a0 Currently, the\u00a0base year for GDP calculation is 2011-12.\u00a0 What is&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/nominal-gdp-and-real-gdp-and-gdp-deflator\/\">Continue reading <span class=\"screen-reader-text\">Nominal GDP and Real GDP and GDP Deflator<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-71334","post","type-post","status-publish","format-standard","hentry","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":16,"cached_at":1698379843,"cached_date":1698659868},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=71334"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71334\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=71334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=71334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=71334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}