Corrections in the GNP figures for price changes require the use of a

Corrections in the GNP figures for price changes require the use of a price deflator. A price deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is used to adjust the nominal value of GDP or GNP to obtain the real value of GDP or GNP. The price deflator takes into account the changes in the price level of goods and services over time, allowing for more accurate comparisons of the economic performance of a country between two different periods.