GDP deflator implicit price deflator implicit price deflators GDP deflators
GDP stands for Gross Domestic Product (the measure of all goods and services produced in a year).
Inflation is amount by which the cost of goods and services increase. For example, if the average wage was $10 on one year and $10.30 the next year, then wage inflation was 3% that year.
If 10 billion dollars was spent on wages both years, you would know that a billion hours of labor were spent the first year. But the second year, you would have to adjust the 10 billion dollars for the higher cost of labor before you could calculate how many hours of labor were spent.
The GDP deflator helps to make those kinds of comparisons for the entire economy over many years.