To see details on the word
GDP deflator
please enable javascript.

GDP deflator

  economics:  a rate by which to multiply a year’s GDP to remove the effects of inflation when that year’s GDP is compared to the GDP of another year
 Mark word for later review on this computer
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.
Web Links:
(try right-click if popups are disabled)
Dictionary -®
Dictionary/Synonyms - Google®
Dictionary List - OneLook®
Wikipedia Article
Google Images
Search for samples from other sources:
(try right-click if popups are disabled)
Interest -- Source
General -- Google News®
General -- Time® Magazine
General -- Twitter®
Associated words [difficulty]:   GDP deflator , inflation [4] , deflation [9]
     If popups are enabled: Search in OneLook®   If Flash® is also enabled: Search in Visuwords®
Most commonly used in these subjects:   Public Policy & Politics, Business, Personal Finance
Home . . . enhancing vocabulary while reading