Answer to Question #59585 in Macroeconomics for ali

Question

Calculating CPI, real, and per capita terms.
Year: 2000, 2001, 2002.
Data: 847, 902, 911.
GDP ($B): 562, 607, 619.
Pop (m): 183, 201, 232.
Calculate inflation for 2001.

Answer 1

Inflation for 2001 can be calculated in such way: π(2001) = (Real GDP - Nominal GDP)/Nominal GDP*100% = (902 - 607)/607*100% = 48.6%.