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    M4 Problem Set 4 Inflation and The GDP Deflator

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    answers to inflation worsheet

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    M4 Problem Set 4 Inflation and The GDP Deflator

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    aksharpatel1715
    13 views2 pages
    answers to inflation worsheet

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    M4 Problem Set 4 Inflation and the GDP Deflator

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    answers to inflation worsheet

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views2 pages

    M4 Problem Set 4 Inflation and The GDP Deflator

    Uploaded by

    aksharpatel1715
    answers to inflation worsheet

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Problem Set 4

    Part 1: Inflation—50 Points

    Year CPI Year CPI Year CPI


    1970 38.8 1990 130.7 2010 218.1
    1971 40.5 1991 136.2 2011 224.9
    1972 41.8 1992 140.3 2012 229.6
    1973 44.4 1993 144.5 2013 233.0
    1974 49.3 1994 148.2 2014 236.7
    1975 53.8 1995 152.4 2015 237.0
    1976 56.9 1996 156.9 2016 240.0
    1977 60.6 1997 160.5 2017 245.1
    1978 65.2 1998 163 2018 251.1
    1979 72.6 1999 166.6 2019 255.7
    1980 82.4 2000 172.2 2020 258.8
    1981 83.2 2001 177.1 2021 271.0
    1982 85.2 2002 179.9 2022 292.7
    1983 87.2 2003 184
    1984 93.9 2004 188.9
    1985 100.0 2005 195.3
    1986 109.6 2006 201.6
    1987 113.6 2007 207.3
    1988 118.3 2008 215.3
    1989 124 2009 218.9

    Based on the above table answer the following questions;

    A) What year is the base year? (15) __________________________________________

    B) In which year, did we experience deflation? (15) ______________________________

    C) What was the rate of inflation between 2010 and 2022? (15)________________________

    D) If you earned $50,000 in 2000, how much would you have had to earn in 2022 in order to
    maintain the same purchasing power? (5) ___________________________________
    Part 2: GDP Deflator—50 Points

    A) How does Chapter 3 define Nominal GDP?

    B) How does Chapter 3 define Real GDP?

    C) According to Chapter 3, changes to Real GDP over time is referred


    to as

    D) If Nominal GDP is equal to 1500 and Real GDP is equal to 750, what
    will the GDP Deflator be equal to?

    E) If the GDP Deflator was equal to 271.0 in 2021 and 292.7 in 2022,
    what was the rate of inflation? (Round to the nearest tenth)

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