If the GDP Deflator of a country in the year 2020 is 140.75 and in the year 2021 is 157.33, then what is the inflation rate in the year 2021?

CA Foundation · Business Economics · PYQS · September 2024
If the GDP Deflator of a country in the year 2020 is 140.75 and in the year 2021 is 157.33, then what is the inflation rate in the year 2021?
(A) A. 10.97%
(B) B. 9.09%
(C) C. 11.78%
(D) D. 12.34%

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 11.78%

Topics: Money Market, Determination of National Income

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