This includes all the changes in market prices during the current year due to inflation or deflation. When the GDP Deflator is known it can be used to calculate Real GDP from Nominal GDP. To do this we divide nominal GDP by real GDP and multiply the result with 100.
Real or chained GDP numbers have been adjusted to remove the effects of inflation over time so different periods can be compared.
When calculating percent increase the smaller number is the original or old value and the bigger number is the new or final value. The GDP growth rate is calculated by using percentage change. This gives us the change in nominal GDP from the base year that cannot be attributed to changes in real GDP. Going back to our example we can quickly see that the GDP deflator for 2015 is 100 400000400000100.