Data for nominal GDP and the GDP deflator (2010 = 100) in 2017 and 2018 for six major industrial countries are presented in the accompanying Table A.

a. Use the data provided to calculate the 2017 and 2018 real GDP of each country measured in 2010 prices. Place the figures in the blanks provided. 

b. Use the data for the GDP deflator to calculate the inflation rate of each country. Put your answers in the blanks provided. 

c. Which country had the highest growth rate of real GDP? Which had the lowest? 

d. Which countries had the highest and the lowest inflation rates? 

e. Which one of the countries had the most inflation during this period?

Transcribed Image Text:

TABLE A Country United States Canada Japan Italy Australia Germany NOMINAL GDP (MILLIONS OF LOCAL CURRENCY UNITS) 2017 19,519.42 2,141.5 545,897.4 1,736.6 1,807.9 3,245.0 2018 20,580.2 2,219.1 547,125.5. 1,766.2 1,897.0 3,344.4 GDP DEFLATOR (2010=100) 2017 112.2 111.0 101.1 107.5 110.1 110.8 2018 114.9 112.9 101.0 109.2 112.3 113.2 REAL GDP (IN 2010 CURRENCY UNITS) 2017 2018 INFLATION RATE 2018