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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use