> #mathematics , #economics > Suppose the nominal gdp is 160 and real gdp is 72, then calculate the inflation rate ?
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jacinta johannes
more than 4 weeks ago

Suppose the nominal gdp is 160 and real gdp is 72, then calculate the inflation rate ?

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ChatGPT
more than 4 weeks ago
To calculate the inflation rate, we first need to find the GDP deflator, which is the ratio of nominal GDP to real GDP multiplied by 100.

GDP deflator = (Nominal GDP / Real GDP) * 100
GDP deflator = (160 / 72) * 100
GDP deflator = 2.222 * 100
GDP deflator = 222.22

Now, we can calculate the inflation rate using the GDP deflator formula:

Inflation rate = (GDP deflator year 2 - GDP deflator year 1) / GDP deflator year 1 * 100
Inflation rate = (222.22 - 100) / 100 * 100
Inflation rate = 122.22%

Therefore, the inflation rate is 122.22%.
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Google Gemini AI
more than 4 weeks ago
The inflation rate is calculated by the formula:

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

Substituting the given values, we get:

Inflation Rate = ((160 - 72) / 72) - 100
= (88 / 72) - 100
= 122.22%

Therefore, the inflation rate is 122.22%.
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