In 1986,the base year,GDP was 4000.In 1989 the GDP deflator was 115.We may conclude that

Name: In 1986,the base year,GDP was 4000.In 1989 the GDP deflator was 115.We may conclude that
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The GDP deflator measures the change in prices of all goods and services included in GDP. An increase in the GDP deflator from 100 to 115 indicates that prices have increased by 15% since the base year. Therefore, we can conclude that there was some inflation between 1986 and 1989.

In 1986,the Base Year,GDP Was 4000