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WebDec 2, 2024 · 1. Definition of a deflator. Estimates of economic activity, such as gross domestic product (GDP), are typically available in "nominal" or "real" terms. “Nominal” estimates reflect the cash value of output or expenditure, such as those consumers might experience in shops. These change over time, reflecting movements in prices and … WebFeb 27, 2014 · The GDP Deflator One example of a measure of the average price level is the GDP deflator. NGDPt GDP _ Deflatort = ×100 RGDPt 18. 19. 20. The Inflation Rate We can use the growth rate formula from previous to calculate the Inflation Rate (the Inflation Rate is The percentage increase in the price level from one year to the next.) 21. WebUsing the formula for the GDP deflator given in class, calculate the GDP deflator for the last ten years and fill out the column labeled GDP deflator1. Calculate this GDP deflator using a one-point scale. Answer: GDP deflator = (nominal GDP)/(real GDP). See table below for results. c. Now we want to redefine the base year and make 2005 the new ... how to set up acurite