GDP implicit price deflator
GDP implicit price deflator
An economic technique used to account for inflation by comparing the current-dollar gross domestic product GDP to constant-dollar GDP as a ratio. The ratio accounts for price changes of goods and services that make up GDP and changes in the composition of GDP.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
GDP Price Deflator
A ratio of nominal GDP to real GDP expressed as a percentage. The GDP price deflator is used as a measure of the inflation rate; it does not account for price changes in commodity baskets like the Consumer Price Index. Rather, it shows changes in GDP compared with a base year.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved