Consider the following tabulated data for an economy and answer the questions that follow :
| Year | GDP at current prices | GDP at constant prices |
|---|---|---|
| 1975 | 21 | 17 |
| 1980 | 26 | 21 |
| 1985 | 32 | 26 |
| 1990 | 39 | 32 |
| 1995 | 47 | 39 |
If the GDP deflator is taken as the price index for the economy, in how many of the periods 1975–80, 1980–85, 1985–90 and 1990–95 did the economy experience inflation?
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National income accounting has come up 132 times in 6 exams since 2010.
This question is on Price indices: the GDP deflator and CPI, part of National income accounting in Macroeconomics.
How the price level and inflation are measured, and how the deflator differs from the CPI.
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Question from the JNU SSS 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.