The GDP deflator for each year and inflation rate for all years except 2009. Concept Introduction: GDP Deflator: The inflation level of an economy is reflected by the prices of products which are produced in the country within the given time period, this inflation level is measured with the help of GDP deflator. Formula to calculate GDP deflator is: Consumer Price Index (CPI): It calculates the weighted average of prices of all goods and services that are in the consumer’s basket, the consumer basket contains all those goods and services which are consumed by the consumer for satisfaction of his wants. Inflation rate: The overall increase in CPI, which is the weighted average of prices of all the goods and services, is known as inflation rate. Formula to calculate inflation rate is:

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Chapter 13, Problem 8P

To determine

To determine: The GDP deflator for each year and inflation rate for all years except 2009.

Concept Introduction:

GDP Deflator: The inflation level of an economy is reflected by the prices of products which are produced in the country within the given time period, this inflation level is measured with the help of GDP deflator.

Formula to calculate GDP deflator is:

Consumer Price Index (CPI): It calculates the weighted average of prices of all goods and services that are in the consumer’s basket, the consumer basket contains all those goods and services which are consumed by the consumer for satisfaction of his wants.

Inflation rate: The overall increase in CPI, which is the weighted average of prices of all the goods and services, is known as inflation rate.

Formula to calculate inflation rate is:

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