Suppose that nominal GDP were $1200 billion in 1990 and $2000 billion in 1995.The implicit GDP deflator was 1.00 in 1990 and 1.50 in 1995.From this we can infer that,between 1990 and 1995

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The implicit GDP deflator is the ratio of nominal GDP to real GDP, expressed as a price index. Therefore, from 1990 to 1995, the price level (as measured by the GDP deflator) increased by 50% (from 1.00 to 1.50), indicating inflation. To calculate the real GDP growth, we need to adjust for inflation, which we can do by dividing nominal GDP by the GDP deflator for each year. Real GDP in 1990 was $1200 billion/1.00 = $1200 billion, and in 1995 it was $2000 billion/1.50 = $1333.33 billion. Real GDP increased by ($1333.33 - $1200) / $1200 x 100% = 11.11%, or about 11%.

Suppose That Nominal GDP Were $1200 Billion in 1990 and $2000