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Finance Dictionary and Glossary of Investment Terms

GDP implicit price deflator  

Definition 1.

Current dollar GDP divided by constant dollar GDP. This ratio is used to account for the effects of inflation, by reflecting the change in the prices of the bundle of goods that make up the GDP as well as the changes to the bundle itself.
 

Definition 2.

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 composite of GDP.
 
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