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To calculate the GDP deflator we have to:
multiply real GDP by nominal GDP.
divide real GDP by nominal GDP
divide nominal GDP by real GDP
divide nominal GDP by consumer price index
3rd option is correct. In economics, the GDP deflator (implicit price deflator) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. GDP stands for gross domestic product, the total value of all final goods and services produced within that economy during a specified period. The GDP price deflator is an economic measure of inflation and is derived by dividing nominal GDP by real GDP, and then multiplying by 100.
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