Table 23-3
The following table reports nominal and real GDP for the U.S. from 1929 to 1932.

$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal GDP } \
\text { (Billions of dollars) }
\end{array} & \begin{array} { c }
\text { Real GDP } \
\text { (Billions of dollars) }
\end{array} \
\hline 1929 & 103.6 & 977 \
\hline 1930 & 91.2 & 892.8 \
\hline 1931 & 76.5 & 834.9 \
\hline 1932 & 58.7 & 725.8 \
\hline
\end{array}$$
-Refer to Table 23-3. What are the GDP deflator and the inflation rate for 1931?
A)9.16, ?11.5
B)9.16, ?10.3
C)1091.37, 10.3
D)1091.37, 11.5

Question

Table 23-3
The following table reports nominal and real GDP for the U.S. from 1929 to 1932.
​
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal GDP } \
\text { (Billions of dollars) }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (Billions of dollars) }
\end{array} \
\hline 1929 & 103.6 & 977 \
\hline 1930 & 91.2 & 892.8 \
\hline 1931 & 76.5 & 834.9 \
\hline 1932 & 58.7 & 725.8 \
\hline
\end{array}$$
-Refer to Table 23-3. What are the GDP deflator and the inflation rate for 1931?
A)9.16, ?11.5
B)9.16, ?10.3
C)1091.37, 10.3
D)1091.37, 11.5

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100. For 1931, the GDP deflator is (76.5 / 834.9) * 100 = 9.16. The inflation rate is calculated as (GDP deflator in current year - GDP deflator in previous year) / GDP deflator in previous year * 100. For 1931, the inflation rate is ((9.16 - 10.3) / 10.3) * 100 = -10.3%.

Table 23-3 the Following Table Reports Nominal and Real GDP

Table 23-3
the Following Table Reports Nominal and Real GDP