Question: Use the data from problem 5 to answer the following: a. Using 1998 as the base year, what is the GDP defl ator for 1998

Use the data from problem 5 to answer the following:

a. Using 1998 as the base year, what is the GDP defl ator for 1998 and 1999? What is the rate of infl ation over this period?

b. Using 1999 as the base year, what is the GDP defl ator for 1998 and 1999? What is the rate of infl ation over this period?

c. Does the choice of base year affect the rate of infl ation computed using the GDP defl ator?

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