Two years ago,the GDP deflator for Old York was 300,and today it is 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. Plugging in the values: [(330.75/300)^(1/2)] - 1 = 0.05 or 5%.

Two Years Ago,the GDP Deflator for Old York Was 300,and