If the GDP deflator was 105 in 2000 and 115 in 2001, the annual rate of inflation was:
A) 10 per cent.
B) 15 per cent.
C) 9.5 per cent.
D) 0.9 per cent.

Name: If the GDP deflator was 105 in 2000 and 115 in 2001, the annual rate of inflation was: A) 10 per cent. B) 15 per cent. C) 9.5 per cent. D) 0.9 per cent.
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Question

Quizplus · Accepted Answer

The GDP deflator's increase from 105 to 115 represents a 10 point increase on a base of 105, which calculates to a (10/105)*100 = 9.5 percent rate of inflation.

If the GDP Deflator Was 105 in 2000 and 115