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The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data.
Instructions: Round your answers to two decimal places.
Year Nominal GDP Price Index(billions) (Year 2005 = 100) Real GDP(billions)
1968 $ 914.80 24.01 _____ $1978 2298.80 42.40 _____ $1988 5105.40 68.98 _____$1998 8798.50 87.51 _____$2008 14446.40 110.48 _____$
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