If the price of a basket of goods in 2015 was 120 and the price of the same basket of goods was 130 in 2016. Assume that 2015 is the base year . Assume further that nominal GDP for 2016 was $310, the real GDP for 2016 would be
Added by Michael M.
Step 1
The GDP deflator is calculated as: GDP Deflator = (Nominal GDP / Real GDP) * 100 We are given the price of a basket of goods in 2015 (base year) and 2016. We can use this information to calculate the inflation rate between 2015 and 2016: Inflation Rate = (Price Show more…
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