The GDP deflator in year 2 is 110 and the GDP deflator in year 3 is 118. Calculate the rate of inflation between years 2 and 3.

Bureau of Economic Analysis data show that with base year 2005​ = 100, the GDP price index was 109.7 in the second quarter of 2009. In that same​ quarter, the PCEPI was 108.8.   Given the further information that the prices of capital goods​ (investment) and foreign traded goods​ (exports and​ imports) increased at a slower pace than the prices of consumption goods and​ services, how would you explain the difference in the GDP price index and PCEPI measures of​ inflation?   Choose the correct statement.   A. The prices of government goods and services increased at the same pace as the prices of consumption goods.   B. The prices of consumption goods increased at a faster pace than the prices of government goods.   C. The prices of exports increased at the same pace as the prices of imports.   D. The prices of government goods and services increased at a faster pace than the prices of consumption goods.   E. The prices of capital goods and foreign traded…

Assume that a market basket necessary for consumption by a typical household in the economy consists of 300 sandwiches and 3 iPads. In year 2017 the price for one sandwich was $4, and the price of one iPad was $150. In year 2018, the price for one sandwich was $5, and the price of one iPad was $200. Assume that for our analysis we consider year 2017 as the base year. What is the rate of inflation from year 2017 to year 2018? a) 127.27% b) 27.27% c) 20% d) 75%

Inflation is primarily measured by changes in: (A) GDP (B) CPI (C) GNP (D) HDI