Indicate that inflation or deflation has occurred

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Suppose nominal GDP is equal to $2,000 and real GDP is equal to $1,600. Based on these values, calculate the GDP Deflator, using the formula provided in chapter 10 (show your calculation below). Does the value calculated for the GDP Deflator indicate that inflation or deflation has occurred?

                                    Nominal GDP

           GDP deflator = -------------------- x 100

                                    Real GDP

Reference no: EM132066042

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