The primary purpose of the government's existence is to provide economic stability to the country to determine future economic prospects. One's nation should have a stable economy to show prosperity in business, solid and maintainable finances, and good cohesion. Studies have shown that many developing countries like Singapore are experiencing inflation problems affecting economic growth. Since economic growth is measured by changes in gross domestic product (GDP), it is essential to understand the causes of inflation and unemployment to further understand changes such as recession and expansion. Different methodologies such as Aggregate Supply (AS) and Aggregate Demand (AD) model and Phillips Curve approach affect Gross Domestic Product (GDP) is a widely used economic barometer globally to determine whether the economy of the country is in recession or expansion. This is a great tool for the government to help make a critical economic decision whether to inject more money or remain constant. It is also expressed in two different functional terms, Real Gross Domestic Product (GDP) and Nominal Gross Domestic Product (GDP). When inflation occurs or price levels change, real gross domestic product (GDP) is adjusted. While nominal gross domestic product (GDP) does not. The average prices of goods and services in the current year gross domestic product (GDP) expressed as a percentage of base year prices are called the gross domestic product (GDP) deflator, measured the price level. To analyze the impact of price changes in an economy, the gross domestic product (GDP) deflator would be the ideal price index as it reflects changes in consumption patterns and the profile of new goods and services. When real gross domestic product (GDP) increases or fluctuates in a given period, it shows that the economic growth rate is expanding or contracting since real gross domestic product (GDP) is used to calculate economic growth