Table 7.1 GDP
$$\begin{array} { | l | r | c | r | }
\hline & \begin{array} { c }
\text { Nominal GDP(in billions of } \
\text { dollars) }
\end{array} & \text { GDP deflator } & { \text { CPI } } \
\hline 2002 & \$6,992.4 & 106.2 & 151.6 \
\hline 2003 & 7,431.6 & 109.1 & 153 .8 \
\hline 2004 & 7,843.2 & 112.3 & 157 .8 \
\hline
\end{array}$$ Based on Table 7.1,the rate of inflation between 2002 and 2003 using the CPI was
A)1.5 percent.
B)2.2 percent.
C)6.2 percent.
D)4.1 percent.

Question

Table 7.1 GDP
$$\begin{array} { | l | r | c | r | } 
\hline & \begin{array} { c } 
\text { Nominal GDP(in billions of } \
\text { dollars) }
\end{array} & \text { GDP deflator } & { \text { CPI } } \
\hline 2002 & \$6,992.4 & 106.2 & 151.6 \
\hline 2003 & 7,431.6 & 109.1 & 153 .8 \
\hline 2004 & 7,843.2 & 112.3 & 157 .8 \
\hline
\end{array}$$ Based on Table 7.1,the rate of inflation between 2002 and 2003 using the CPI was
A)1.5 percent.
B)2.2 percent.
C)6.2 percent.
D)4.1 percent.

Quizplus · Accepted Answer

The rate of inflation using the CPI from 2002 to 2003 is calculated as $\frac{153.8 - 151.6}{151.6} \times 100 = 1.45\%$, which rounds to 1.5 percent.

Table 71 GDP Based on Table 7