Question

In: Economics

How to Calculate the inflation rate for a known year solution to an unknown year solution...

How to Calculate the inflation rate for a known year solution to an unknown year solution (2020–2021) period using the GDP deflator based on the Laspeyres, Paasche, and chain-weighted indexes of GDP..

Solutions

Expert Solution

GDP Deflator is a measurement of price level of domestically produced good and services in an economy.

Laspeyres Index is a consumer price index used to measure the change in prices of goods and services.
  
Paasche price index is a consumer price index used to measure the change in the price and quantity of a goods and services relating to a base year price and observations.
  
Example:-GDP deflator rate calculator


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