The GDP deflator is used to adjust nominal GDP for inflation in the calculation of real GDP.

Name: The GDP deflator is used to adjust nominal GDP for inflation in the calculation of real GDP.
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The GDP deflator is a measure that allows us to adjust nominal GDP (which is valued at current prices) for inflation, to calculate real GDP (which is valued at constant prices), thus reflecting the true value of goods and services produced over time.

The GDP Deflator Is Used to Adjust Nominal GDP for Inflation