Deflators are used by the software whenever the Event Year is set to a year that differs from the model data year. The Output Deflator converts the Industry Sales value to the year of the dataset, while the GDP Deflator converts the Value-Added values to the year of the dataset. Output Deflators are specific to each industry, while the GDP Deflators are the same across industries. You can see the deflator values in the Setup Activities screen when the Event Year field is displayed (Event Options Show Event Year). The BEA has historical GDP and Output deflators which we use for our historical and current Output Deflators. For projections into the future, we use the annual rate of change in output from the BLS' employment growth model.
More information on Deflators and Margins