On January 1,2001,the GDP deflator for Old York was 300,and on January 1,2003,the GDP deflator had risen to 330.75.Based on this information,the annual average inflation rate for the two years was

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The GDP deflator increased from 300 to 330.75 over two years. The formula for the annual average inflation rate is [(Final Value/Initial Value)^(1/Number of Years) - 1] * 100. Plugging in the values: [(330.75/300)^(1/2) - 1] * 100 = 5%.

On January 1,2001,the GDP Deflator for Old York Was 300,and