For my $10 trillion, I’m pretty sure that the gdp deflator is in the ballpark of $12 trillion (just a few points below the minimum gdp).
A deflation is when the amount of money in circulation decreases. A deflation is more of a deflation when the currency is debased (loses purchasing power). A deflation is when the gdp deflator is a negative number, like 0.2 trillion.
The problem is that since we have a $12 trillion gdp, you have to subtract the negative number from the positive number to determine your actual gdp. To see why, just imagine that a $1 trillion increase in real gdp is equal to a $1 trillion negative gdp. Or to take another example, if real gdp was $1 trillion and inflation was $1 trillion, we’ll get a negative number for inflation.
If we take inflation and real gdp to be in the same ratio, we have to subtract the negative number from the positive number to determine our actual gdp. In this case, assuming a 1 trillion increase in real gdp is equal to a 1 trillion negative gdp, the positive number is actually 0.2 trillion. I’ll let you figure out what the negative number is.
In this post we’ve taken the “nominal” gdp number and subtracted the negative gdp number from it to find our actual gdp. It turns out this is the correct calculation for the real gdp, but we’re still left with a zero because we’re missing the negative number! We’re left with a false value because we’ve made a mistake.
It turns out that the nominal gdp number is actually 0.2 trillion, and the positive number is actually a very small negative number (0.1 trillion). Our real number has no relationship to the nominal number. There are many ways to calculate a real number, but if you want to do it correctly you have to make sure it gives the correct answer.
There are many ways to calculate a real number. One of the easiest ways is to use the formula for a fraction. In our case, the real number is actually $12 trillion so we can use that formula instead. But another way is to use the formula for an infinite number of decimal places. In our case, the real number is actually $10 trillion so we can use that formula instead. The final way is to use the formula for a finite number of decimal places.
For those who are new to this, this is kind of an important distinction. By using the formula for a finite number of decimal places, you will get a number that is exactly as large as the original number but with only a certain amount of decimal places. This means that when you calculate the real number, you will get an answer that is exactly as large as the original number but with only a certain fraction of the decimal places. This is called a “deflator.
The amount of decimal places that are used in calculating a real number has a huge effect on the accuracy of that number. For example, the number 362.1 is very accurate (the number is exact) because it uses only 3 decimal places. If you were to multiply 362.1 by itself, the number would be 6, but it would be 6.1 instead.
It’s basically the same thing as with the gdp deflator. The idea is to have a constant that is always exactly the same, but in practice you get some approximation of it. A good example is the real number 362.1, whereas it’s very inaccurate because it uses only 6 decimal places. The number is actually 6.03, but that’s because 6.03 rounded to 6 decimal places is 6.03.