For the following, use the formula that multiplies by 100. For example, instead of 1.6 write 160.

Question

For the following, use the formula that multiplies by 100. For example, instead of 1.6 write 160.

If the general level of prices for goods and services included in GDP doubled between 1996 and 2002, the GDP deflator for 2002 would be________

Answer 1

The prices doubled so, excluding any other variables, the GDP Deflator for 2002 would be 200. In this problem 1996 is the base year.