What tool measures the inflation in the GDP?
Answer (1)
The GDP Deflator, it is used to measure the change in prices of all goods and services in an economy. It’s calculated by dividing nominal GDP by real GDP and multiplying by 100. For example, if the nominal GDP of the Philippines is ₱11 trillion and real GDP is ₱10 trillion, the GDP deflator is 110. That means prices have increased by 10%. Policymakers use this to adjust programs and control inflation.
