definition: A continuous rise in the price of goods or services combined with the reduced value of money.
usage:Sharp rises in inflation often lead to a barter economy, where people exchange items of value instead of using money to pay for them
definition:A measurement that shows how the average price of a standard group of goods changes over time.
usage:A price index can be used to measure how much prices can vary over time.
a statistical series that can be used to measure changes in prices over time. it can be compiled for a specific product or a range of items.
definition:Year serving as point of comparison for other years in a price index or other statistical measure.
usage:The first step to calculating real gross domestic product is choosing a base year
or a year that serves as the basis of comparison for all other years.
market basket consumer price index
definition:Index used to measure price changes for a market basket of frequently used consumer items.
usage:The market basket consumer price index reports on price changes for about 80,000 items in 364 categories.
producer price index
definition:Index used to measure prices received by domestic producers; formerly called the wholesale price index.
usage:The producer price index is used to gauge the rate of inflation and help the government understand how much prices are rising.
implicit GDP price deflator
definition:Index used to measure price changes in Gross Domestic Product
usage:Unlike some price indexes, the implicit GDP price deflator is not based on a fixed basket of goods and services.
definition:Gross Domestic Product measured in current prices, unadjusted for inflation
usage:Within each country the current GDP, or Gross Domestic Product, is normally measured by a national government statistical agency.
dont ajust for inflation
definition:Gross Domestic Product after adjustments for inflation; same as GDP in constant dollar
usage:Real GDP is the total market value, measured in constant prices, of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year.
inflation has been removed
GDP in constant dollars
definition:Gross Domestic Product after adjustments for inflation; also called GDP in constant (chained) dollars; same as real GDP
usage:Comparing the GDP in constant dollars for different years can show whether the standard of living in a country is declining or increasing over time.
implicit gdp price deflator
an index of average levels of prices for all goods and services in the economy