GDP deflator

The index value used to eliminate the effect of inflation. Real national income is found by dividing money national income by the gdp deflator and multiplying by 100.

Similar financial terms

GDP
Stands for Gross Domestic Product. The GDP is an estimate of the total money value of all the final goods and services produced in a given one-year period using the factors of production located within a particular country's borders.

Deflator
A statistical factor used to convert current dollar purchasing power into inflation-adjusted purchasing power. Enables the comparison of prices while accounting for inflation in two different time periods.

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Zero-beta portfolio

A zero-beta portfolio is constructed to have zero systematic risk, similar to the risk-free asset, that is, having a beta of zero. (i.e. in most cases, we assume the beta of debt to be zero).


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