is there any difference between GNP deflator and GDP deflator?

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Solution

If asked on calculation level the difference between GNP and GDp deflator is simply the formulae used to calculate the two.
GDP Deflator = (Nominal GDP/Real GDP) x 100
GNP deflator = (Nominal GNP/Real GNP) x 100
The difference between the two measures is only that the former involves GDP but the later involves GNP. Overall,GNP and GDP deflator acts as a price level indicator for an economy. These are better estimates than CPI as they include all the final goods and services produced within the country (for GDP deflator) or produced by the citizens of a country(for GNP deflator).The second use of these indicators arise while changing nominal output levels to real outputs.

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Similar questions

Q. With regard to difference between GDP Deflator and CPI, which of the following statements is/are correct?

Answer using the codes given below

1 only
2 only
Neither 1 nor 2
Both 1 and 2

Q. 17. Which of the following statement(s) is/are correct about GDP Deflator?
1. The GDP Deflator measures the ratio of nominal to real GDP.
2. GDP Deflator measures the change in the price level between the base year and the current year.
3. GDP deflator does not include prices of imported goods.
Correct answer code is:

GDP Deflator in India Increased to 119.50 Index Points in 2-16 from 117.80 Index point in 2015. Consider the following statemenst regarding the "GDP deflators" :

1) GDP deflator in India is reported by the Ministry of statistics and programme implementation (MOSPI)

2) GDP Deflator is a comprehensive measure of inflation

3) The GDP Deflator is ased on a fixed basket of goods and services.

Select the right statements

Q. GDP deflator refers to __________.

If Real GDP=600 and nominal GDP=660,find GDP deflator (price index).

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