DEFLATOR Meaning and
Definition
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The term "deflator" refers to a measure or statistical indicator used in economics to adjust for the impacts of inflation. It is an important tool utilized for analyzing economic data and comparing different time periods. The deflator provides a means of converting nominal values, which are expressed in current prices, into real values, which are adjusted for changes in purchasing power due to inflation.
In essence, a deflator is a numerical factor that represents the change in the general price level over a given time period. It is commonly used in the calculation of GDP (Gross Domestic Product) or other economic aggregates to remove the effects of inflation. By dividing the nominal value of a variable by its associated deflator, economists can transform it into real terms, enabling more accurate comparisons between different periods.
Deflators can be based on various price indexes, such as the consumer price index (CPI) or the implicit price deflator (IPD). These indexes track changes in the prices of goods and services over time and serve as a reference point for calculating the deflator. The deflator is typically expressed as a percentage and represents the rate of inflation or deflation relative to a chosen base period.
Overall, the deflator plays a crucial role in economic analysis by providing a means of accounting for inflationary pressures and allowing for the accurate measurement of economic variables in real terms, ultimately facilitating comparisons and the identification of underlying trends.
Common Misspellings for DEFLATOR
- seflator
- xeflator
- ceflator
- feflator
- reflator
- eeflator
- dwflator
- dsflator
- ddflator
- drflator
- d4flator
- d3flator
- dedlator
- declator
- devlator
- deglator
- detlator
- derlator
- defkator
Etymology of DEFLATOR
The word "deflator" is derived from the Latin verb "deflare", which means "to blow away", "to deflate", or "to lessen". The Latin term is formed from the prefix "de-" (indicating reversal or removal) and the verb "flare" (meaning "to blow"). The term "deflator" made its way into English in the mid-20th century and is primarily used in the context of economics to refer to a tool or mechanism that adjusts or reduces a monetary value to account for inflation or changes in price levels.
Similar spelling words for DEFLATOR
- depilator,
- deviltry,
- deflates,
- deflate,
- deflater,
- deplete,
- depilate,
- defilade,
- depilatory,
- defaulter,
- deflated,
- deflation,
- defoliator,
- Dare-deviltry,
- GDP-deflator,
- depletion,
- tavildara,
- devilder,
- diovulatory,
- depleted.
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