Question 1
Refer to the information provided in Table 21.9 below to answer the question(s) that follow.
Refer to Table 21.9. Assume that this economy produces only two goods Good
X and Good
Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is
◦ -6.1%.
◦ -5.5%.
◦ 6.5%.
◦ 79%.
Question 2
The GDP deflator is the
◦ difference between real GDP and nominal GDP multiplied by 100.
◦ difference between nominal GDP and real GDP multiplied by 100.
◦ ratio of nominal GDP to real GDP multiplied by 100.
◦ ratio of real GDP to nominal GDP multiplied by 100.
