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Question
Suppose that the GDP deflator for the United States increases from 115 to 120 between 2019 and 2020. Briefly explain what this information tells you?about:
i. The percentage change in the overall price level between the two years.
Between 2019 and? 2020, the overall price level measured by the GDP deflator increased by ____ percent. ?
(Enter your response rounded to two decimal? places.)
ii. The percentage change in the real GDP between the two years.
Between 2019 and? 2020, the percentage change in real GDP between the two years was
A. 4.35 percent.
B. 95.83 percent.
C. -4.17 percent.
D. More? information, such as the value for nominal? GDP, is needed to answer this question.
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