Table 7.2 GDP for Newland
$$\begin{array} { | l | r | c | r | }
\hline & \begin{array} { c }
\text { Nominal GDP(in billions of } \
\text { dollars) }
\end{array} & \text { GDP deflator } & { \text { CPI } } \
\hline 2001 & \$ 5,900 & 120.1 & 128.3 \
\hline 2002 & 6,300 & 123.0 & 131.7 \
\hline 2003 & 6,800 & 126.3 & 136.5 \
\hline
\end{array}$$ Based on Table 7.2,the rate of inflation between 2001 and 2002 using the CPI was
A)2.65 percent.
B)2.58 percent.
C)3.40 percent.
D)2.02 percent.

Question

Table 7.2 GDP for Newland
$$\begin{array} { | l | r | c | r | } 
\hline & \begin{array} { c } 
\text { Nominal GDP(in billions of } \
\text { dollars) }
\end{array} & \text { GDP deflator } & { \text { CPI } } \
\hline 2001 & \$ 5,900 & 120.1 & 128.3 \
\hline 2002 & 6,300 & 123.0 & 131.7 \
\hline 2003 & 6,800 & 126.3 & 136.5 \
\hline
\end{array}$$ Based on Table 7.2,the rate of inflation between 2001 and 2002 using the CPI was
A)2.65 percent.
B)2.58 percent.
C)3.40 percent.
D)2.02 percent.

Quizplus · Accepted Answer

The rate of inflation using the CPI from 2001 to 2002 is calculated as $\frac{131.7 - 128.3}{128.3} \times 100 = 2.65$ percent.

Table 72 GDP for Newland Based on Table 7