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.

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.
References in periodicals archive ?
As with all BEA aggregate price indexes, the GDP implicit price deflator is a Fisher chain price index with the average change in prices weighted by the composition of products and service bundles at the beginning and end of each quarter (Chapter 4, NIPA Handbook).
opportunity cost), the preferred index is the GDP implicit price deflator, which captures overall economic activity rather than consumer spending.
These data include a breakdown of GDP into price and quantity indexes, as well as a GDP implicit price deflator.
The GDP implicit price deflator deflates the current nominal-dollar value of GDP by the chained-dollar value of GDP.