a. Find the values for the most recent quarter and the values for the same quarter one year ago for nominal Gross Domestic Product (GDP) and Real Gross Domestic Product (GDPC1).
b. Use these values to calculate the GDP price deflator for the most recent quarter and the GDP price deflator for the quarter one year ago.
c. Using the two GDP price deflators, calculate the inflation rate during this year.
d. Look again at Figure 19.3 on page 645. Briefly explain why the nominal and real GDP lines intersect at the base year. What is the value of the GDP deflator in the year when the nominal and real GDP lines intersect?
Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research.stlouisfed.org/fred2/).