GNP deflator is

✅ Explanation: The GNP deflator is a measure of the overall price level of goods and services produced by a country's residents. It is calculated by dividing the Nominal GNP (which is the total value of goods and services produced by residents at current prices) by the Real GNP (which is the total value of goods and services produced by residents at constant prices, adjusted for inflation). This ratio gives us an indication of how much prices have changed over time.

🔑Key Points:
-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.
-The formula implies that dividing the nominal GDP by the Real GDP will give the GDP deflator, hence "deflating" the nominal GDP into a real measure