Economics help

ugatennis08 · 17 Feb 2008 at 18:48

This is really getting on my nerves

I assumed that once you calculate the GDP deflator you can simply put one over another and -1 to find the inflation rate!!!!

I HATE THIS STUPID SUBJECT

Arjun806 · 17 Feb 2008 at 18:58

ugatennis08 said:
I HATE THIS STUPID SUBJECT

Agreed, I droped it after a few lessons.

Sorry, can't help with your question though.

Ben M · 17 Feb 2008 at 18:59

do your own homework

ugatennis08 · 17 Feb 2008 at 19:00

Ben M said:
do your own homework

I was not asking for the answer, merely if what I was doing is correct. :rolleyes:

Ben M · 17 Feb 2008 at 19:01

ugatennis08 said:
I was not asking for the answer, merely if what I was doing is correct.

I don't see any questions posed in your first post.

Nash · 17 Feb 2008 at 21:05

B.) 1.1%

The growth rate between '97 and '98 is 4.2% so find out what '97's nominal GDP plus 4.2% (its effective real growth rate in '97 dollars) is and the remaining difference between that figure and the '98 nominal GDP is the inflation rate.

In figures:
$8,747 x 1.042% = $8,652.768

(1/$8,652.768) x $8,747 = 1.01089... = 1.1% change so 1.1% inflation rate.

The other answers are growth rate is 4.4% and deflator 95.4 I think too.