GNP deflator

GNP deflator

a PRICE INDEX that is used as a means of adjusting money GROSS NATIONAL PRODUCT values to obtain real GNP values (see REAL VALUES). Real GNP is important because this represents output of physical goods and services, not their money values. An economy may appear to produce more goods and services (ECONOMIC GROWTH) because money GNP has increased, but this may simply reflect price increases (INFLATION) without any increase in physical output. The GNP deflator is thus designed to remove the influence of price changes and record only real changes.
References in periodicals archive ?
GDP/GNP deflator to GDP/ GNP deflator for either the full sample or through 1988 and the CPI to CPI from 1989 through 1999.
We find evidence of restricted trend stationarity for five series, nominal GNP, per capita real GNP, employment, GNP deflator, and nominal wages, at the 5% significance level.
Real money balances were computed as nominal money supply divided by the GNP deflator (RM1) and alternatively by the CPI (RM11).
The cumulative GNP deflator in Euros for 2000-2002 (6.
Once income and money were added to the VAR equations containing the GNP deflator and unit labor costs, the results fall in line with Ashenfelter and Card, as Granger causality was estimated only from wages to prices.
Moreover, although Reagan's forecast is significantly rosier on GNP growth, its prediction of the decline in the GNP deflator was more accurate than the other forecasts, though still wildly inaccurate.
Forecasts of real GNP, the GNP deflator, and nominal GNP are percentage changes from the previous quarter, and forecasts of the Treasury bill rate are cumulative changes in the quarterly average level.
Certainly the declining real deficit could not be derived simply by deflating the increasing nominal deficit by the GNP deflator.
Figure 1 also reports domestic GNP deflators,(12) together with the GNP deflator of a major trading partner, Britain in the case of the US dollar and the USA in the case of sterling.
average hourly earnings in manufacturing, the GNP deflator, and the CPI.
11) In addition to G and R (or F), our VAR model includes four other key macro variables; namely, real GNP (X), the monetary base (B), the GNP deflator (P), and the interest rate on three-month Treasury bills (I).
Hence the rise in the GNP deflator there may well remain in the double-digit range over most of the projection period.