Question

Using the table below calculate the missing values.

Year	Nominal GDP	Real GDP	GDP Deflator
1 (2007)	3,753	____________	81
2 (2008)	4,551	5,009	____________
3 (2009)	5,150	____________	100.00
4 (2010)	5,666	5,255	____________
5 (2011)	____________	6,175	158

Enter the missing values : the inflation/growth rates as indicated below.

Inflation rate year 1-2 ____________

Inflation rate year 3-4 ____________

Real growth rate yr. 2-3 ____________

Real growth rate yr. 4-5 ____________

Answer 1

GDP Deflator = (Nominal GDP/Real GDP)*100

This is the formula to calculate values,

Given below I calculated all values

=

Year	Nominal GDP	Real GDP	GDP Deflator
1 (2007)	3,753	4,633	81
2 (2008)	4,551	5,009	91
3 (2009)	5,150	5,150	100.00
4 (2010)	5,666	5,255	108
5 (2011)	9,757	6,175	158

Entering the missing values : the inflation/growth rates as indicated below.

Inflation rate year 1-2 =10%

Inflation rate year 3-4 = 8%

Real growth rate yr. 2-3 =2.8%

Real growth rate yr. 4-5 =17.5%

This is calculated based on below,

GDP Deflator shows actual inflation,

Inflation Rate = ((Real GDP - Nominal GDP)/Real GDP)*100

Based on this formula we calculate all above values.

Real grouth Rate =((Real GDP 2 - Real GDP 1 )/Real GDP 1)

Based on above formula we calculated above values.