Exhibit 11-6 Use the table below to answer the following question(s). $$\begin{array} { | l | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal GDP } \
\text { (billions) }
\end{array} & \begin{array} { c }
\text { GDP } \
\text { deflator }
\end{array} \
\hline \text { Year 1 } & 600 & 100.0 \
\text { Year 2 } & 1,000 & 133.3 \
\hline
\end{array}$$ Refer to Exhibit 11-6. Between Year 1 and Year 2, the general level of prices increased by approximately:

Question

Exhibit 11-6 Use the table below to answer the following question(s). $$\begin{array} { | l | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal GDP } \
\text { (billions) }
\end{array} & \begin{array} { c } 
\text { GDP } \
\text { deflator }
\end{array} \
\hline \text { Year 1 } & 600 & 100.0 \
\text { Year 2 } & 1,000 & 133.3 \
\hline
\end{array}$$ Refer to Exhibit 11-6. Between Year 1 and Year 2, the general level of prices increased by approximately:

Quizplus · Accepted Answer

The GDP deflator in Year 2 is 133.3, compared to 100 in Year 1. The increase in the general level of prices is calculated as (133.3 - 100) / 100 * 100% = 33.3%.

Exhibit 11-6 Use the Table Below to Answer the Following