Investor Glossary-gdp implicit price deflatorInvestor Glossary-gdp implicit price deflatorInvestor Glossary-gdp implicit price deflatorInvestor Glossary-gdp implicit price deflatorInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

GDP Implicit Price Deflator

The HTML to link to this page
 

The GDP implicit price deflator measures the level of price change in the U.S. economy. The GDP implicit price deflator is computed by dividing current dollar GDP by constant dollar GDP. The numerator of the GDP implicit price deflator is thus nominal GDP in a given year, unadjusted for price changes. The denominator of the GDP implicit price deflator is what nominal GDP would have been in a predetermined base year. By comparing current dollar GDP to constant dollar GDP, the GDP implicit price deflator accounts for the level of price change. The advantage of using the GDP implicit price deflator to the Consumer Price Index is that the CPI is based on a fixed basket of goods and services, while the GDP implicit price deflator is based on the entire economy. Thus the GDP implicit price deflator, unlike the CPI, reflects changes in consumption and investment trends.



Rate this GDP implicit price deflator definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, in escrow, command economy, class C shares, ex-dividend date, limit order, balance sheet, LIBOR, implied volatility, required rate of return, stock market close, APR, margin rate, Zero Cost Collar, phantom income, 1035 exchange, retained earnings, inflation, diluted share, VIX, real GDP, annual return, current ratio, dividends payable, risk management, quality assurance, FTSE, EBITDA, irrevocable trust, deferred revenue, stock split, deferred tax, FICO score, reverse mortgage, option premium, wholly-owned subsidiary, average price per share, debt service coverage, 1031 exchange, cancelled check, minority interest, liquidity ratio, 401a, 144a, covered put, Key Rate Duration, ex-dividend, open position, per diem


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use