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Answer :
Final answer:
Uplandia's year-over-year inflation rate from 2012 to 2013, using the GDP deflators provided, is calculated to be 12.1 percent.
Explanation:
To calculate Uplandia's year-over-year inflation rate from 2012 to 2013, we use the GDP deflators for those years. The formula for inflation rate based on the GDP deflator is:
Inflation Rate = ((GDP Deflator in the Current Year - GDP Deflator in the Previous Year) / GDP Deflator in the Previous Year) × 100
For Uplandia, using 111.1 for 2013 and 99.1 for 2012, the calculation is:
Inflation Rate = ((111.1 - 99.1) / 99.1) × 100 = (12 / 99.1) × 100 = 12.1%
Therefore, the year-over-year inflation rate for Uplandia from 2012 to 2013 is 12.1 percent.
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Answer:
The inflation for 2013 is 11.1% and for 2012 is -0.9% ( Deflation of 0.9%).
Explanation:
The inflation rate for 2013 is 11.1% we calculate it by using the GDP deflator for 2013 of 111.1 which the formula for the GDP deflator = (real GDP)/(nominal GDP) x100, in which we see that the difference between Real GDP and Nominal GDP is the inflation rate where in this problem we will say 111.1 - 100 = 11.1% that is the inflation rate for this year.
Now to further calculate the inflation rate for 2012 we will say 99.1 -100 =-0.9% , which this year prices decreased instead of increasing therefore there was a deflation.
