$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2
GDP for Newland 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

$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2 
GDP for Newland 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 is calculated as $\frac{131.7 - 128.3}{128.3} \times 100$, which equals approximately 2.65 percent.

Table 72 GDP for Newland Based on Table 7

Table 72
GDP for Newland Based on Table 7