$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2
GDP for Newland Based on Table 7.2,the rate of inflation between 2002 and 2003,using the GDP deflator,was
A)1.62 percent.
B)2.68 percent.
C)4.91 percent.
D)None of the other choices.

Question

$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2 
GDP for Newland Based on Table 7.2,the rate of inflation between 2002 and 2003,using the GDP deflator,was
A)1.62 percent.
B)2.68 percent.
C)4.91 percent.
D)None of the other choices.

Quizplus · Accepted Answer

The rate of inflation using the GDP deflator is calculated as $(126.3 - 123.0) / 123.0 \times 100$, which equals 2.68 percent.

Table 72 GDP for Newland Based on Table 7

Table 72
GDP for Newland Based on Table 7