Use the following to answer questions: Table: iPhones $$\begin{array} { l c c }
\hline \text { Year } & \text { Quantity produced } & \text { Price } \
\hline 2000 & 100 & \$ 100 \
2010 & 90 & 110 \
\hline
\end{array}$$
-(Table: iPhones) This table shows data for a country producing only iPhones. Based on the GDP deflator, the increase in prices between 2000 and 2010 was:
A) 1%.
B) 9.9%.
C) 10%.
D) 110%.

Question

Use the following to answer questions: Table: iPhones $$\begin{array} { l c c } 
\hline \text { Year } & \text { Quantity produced } & \text { Price } \
\hline 2000 & 100 & \$ 100 \
2010 & 90 & 110 \
\hline
\end{array}$$
-(Table: iPhones) This table shows data for a country producing only iPhones. Based on the GDP deflator, the increase in prices between 2000 and 2010 was:
A) 1%.
B) 9.9%.
C) 10%.
D) 110%.

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100. The nominal GDP in 2010 is 90 * $110 = $9900, and the real GDP using 2000 prices is 90 * $100 = $9000. The GDP deflator is ($9900 / $9000) * 100 = 110, indicating a 10% increase in prices.

Use the Following to Answer Questions: Table: IPhones -(Table: IPhones) This Table Shows Data for a Country Producing