$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2002 & \$ 6,992.4 & 106.2 & 151.6 \
2003 & 7,431.6 & 109.1 & 153.8 \
2004 & 7,843.2 & 112.3 & 157.8
\end{array}$

Table 7.1 GDP 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

$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2002 & \$ 6,992.4 & 106.2 & 151.6 \
2003 & 7,431.6 & 109.1 & 153.8 \
2004 & 7,843.2 & 112.3 & 157.8
\end{array}$

Table 7.1 GDP 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 is calculated as $\frac{153.8 - 151.6}{151.6} \times 100\% = 1.5\%$.

Table 71 GDP Based on Table 7