Definitions for "GDP deflator"
The deflator for GDP, thus the ratio of nominal GDP to real GDP (usually multiplied, as with a price index, by 100).
Measure of domestically generated inflation
The GDP (gross domestic product) deflator is an index reflecting changes in the price of goods and services. A positive figure represents a rise in prices, while a negative figure indicates a decline. The deflator is seen as a better barometer of price changes than the consumer price index because it incorporates components of the overall economy, including capital investments. GDP in real terms is calculated by dividing nominal GDP by the deflator. The current deflator formula is seen as overly influenced by items that swiftly spread as a result of price drops, such as personal computers. Critics point out that the deflator has fallen more than the actual prices suggest. Some noted that declines in the capital-investments-related deflator, in which information technology products were heavily represented, artificially boosted the real GDP figures.
Keywords:  gnp, gross, goal, national, product
Goal Setting Gross national product (GNP)