Gross Domestic Product GDP in the measurement of all economic activity in the nation over a given period of time. A macroeconomic term that describes the situation when an economys potential gross domestic product GDP differs from its actual gross domestic product. Mathematically it is represented as Nominal GDP C I G X M.
Formula of GDP Deflator.
The formula for nominal GDP is as such. 7 The best way to compare GDP per capita by year or between countries is with real GDP per capita. In other words it calculates everything that is made. How to Calculate GDP Deflator.