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Use the following information about GDP deflators for the next 2 questions. 2009: 138 2010: 147...

Use the following information about GDP deflators for the next 2 questions.

2009: 138

2010: 147

2011: 158

1.

What is the inflation rate for 2010? (growth rate of the GDP deflator from 2009 - 2010)

Hint: enter your answer without a % sign and round to two decimal places

Example: if the answer is 8.94486654%, enter 8.94

2.

What is the inflation rate for 2011? (growth rate of the GDP deflator from 2010 - 2011)

Hint: enter your answer without a % sign and round to two decimal places

Example: if the answer is 8.94486654%, enter 8.94

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Answer #1

Ans. 1 The inflation rate for 2010 = GDP Deflator 2010 - GDP Deflator2009/ GDP Deflator 2009 x 100

= 147 - 138 /138 x 100

= 6.52

Ans. 2 The inflation rate for 2011 = GDP Deflator 2011 - GDP Deflator 2010/ GDP Deflator 2010 x 100

= 158 -147 / 147 x 100

= 7.48

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