The GDP deflator is used to deflate the nominal value of our Gross Domestic Product. (GDP is the total market value of all goods produced in an economy in a year. GDP accounting is the subject of our next chapter.) The GDP deflator is largely based on other price indices. For example, each component of consumer spending is adjusted using appropriate data from the Consumer Price Index. Business spending for capital equipment or raw materials is deflated with appropriate parts of the Producer Price Index. Parts of other indices are used to deflate the prices of items not included in the CPI or the PPI, such as government services, construction, and agricultural outputs.