# GDP Price Deflator

A flexible-weight measure of the overall price level. It is equal to nominal Gross Domestic Product (GDP) divided by real GDP.

For instance, suppose that nominal GDP is equal to U.S. $10 trillion and that the real GDP is U.S. $5 trillion. Then the GDP price deflator can be obtained by dividing U.S. $10 trillion by U.S. $5 trillion which will yield 2 for GDP price deflator.

For instance, suppose that nominal GDP is equal to U.S. $10 trillion and that the real GDP is U.S. $5 trillion. Then the GDP price deflator can be obtained by dividing U.S. $10 trillion by U.S. $5 trillion which will yield 2 for GDP price deflator.