![Economics 101: GDP Deflator](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2017/02/1-28.jpg?fit=572%2C378&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is the GDP deflator?
The GDP Deflator is another type of price index.
It measures the final price of all goods and services produced domestically.
Rather than a fixed basket of goods, the GDP deflator index changes based on peoples preferences.
GDP Deflator = (Nominal GDP / Real GDP) * 100