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Define Gross Domestic Product (GDP) deflator and discuss its importance. - Economics

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प्रश्न

Define Gross Domestic Product (GDP) deflator and discuss its importance.

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उत्तर

GDP Deflator is the ratio of Nominal to Real GDP. It is a tool which is used to eliminate the effect of price fluctuations in the economy and to determine the real change in physical output of current year. GDP deflator helps in comparison of growth rate of the economy.

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