Example calculating real GDP with a deflator
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Example calculating real GDP with a deflator
To use the GDP deflator to convert nominal GDP to real GDP, you can follow these steps: \n1. Find the nominal GDP for the year you're interested in. \n2. Find the GDP deflator for that year. \n3. Divide the nominal GDP by the GDP deflator and multiply by 100. This will give you the real GDP. \n
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Question 24What is the main difference between CPI and the GDP Deflator?0.5 ptsThe CPI is an annual check on inflation and the GDP Deflator is a decade check on deflationThe CPI tracks price changes for producers, the GDP Deflator tracks price changes for consumersThe CPI tracks inflation, the GDP Deflator tracks hyperinflationThe CPI tracks price changes for consumers, the GDP Deflator tracks all price changes for everyone(consumers, producers, and the government)
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