Consider the following partial economic information for a country where the value of the Gross Domestic Product Deflator (GDPD) is the same as the Consumer Price Index (CPI) and hence generally referred to as the Price Index. The birth rate, mortality rate, and net migrate rate are such that the population growth rate is 0%.

2010

nominal GDP (Billions $): 4486.0

price index: 108

nominal wages ($): 40,000

2011

nominal GDP ($billions): 4710

price index: 112

nominal wages ($): 40,800

[a.] What is the inflation rate for 2011? [3]

Answer rating: 100% (QA)

Calculating Inflation Rate for 2011 Since the Gross Domesti... View the full answer