Answer to Question #204173 in Macroeconomics for Muskan saifi

Question

Nominal GDP in a country was $6890 billion in Year 2012 and $7650 in 2013. The GDP deflator is 102.4 in 2012 and 105.6 in 2013. Find

a) inflation rate from year 2012 to 2013

b) growth rate of real gdp from 2012 to 2013

Answer 1

a) Inflation rate =$\frac {7650-6890}{6890}×100=11.03\%$

b) Growth rate of real GDP=$=[(\frac{105.6}{102.4})-1] ×100 =47.07\%$