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  1. Gdp Deflator

    Linked via "output structure"

    $$\text{Real GDP}t = \sum{i} P{i, 0} Q{i, t}$$
    Thus, the deflator inherently weights current production levels ($Qt$) but uses the prices from the reference period ($P0$) for the real component, and current prices ($P_t$) for the nominal component. This dynamic weighting mirrors the output structure of the current period, making it a better reflection of contemporaneous price pressures than fixed-basket indices.
    Comparison with CPI