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Old 05-17-2011, 07:19 AM   #1
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Default discount versace shoes nominal GDP is $200

the quantities produced stay the same. In this second case, nominal GDP rises but
real GDP remains the same, so the GDP deflator rises as well. Notice that,chi flat iron green, in both
cases, the GDP deflator reflects what's happening to prices,p90x workout supplements, not quantities.
Let's now return to our numerical example in Table 22-2. The GDP deflator is
computed at the bottom of the table. For year 2001, nominal GDP is $200,versace shoes, and real
GDP is $200,zebra chi flat iron, so the GDP deflator is 100. For the year 2002, nominal GDP is $600,
and real GDP is $350, so the GDP deflator is 171. Because the GDP deflator rose in
year 2002 from 100 to 171, we can say that the price level increased by 71 percent.
The GDP deflator is one measure that economists use to monitor the average
level of prices in the economy. We examine another--the consumer price index--in
the next chapter,discount versace shoes, where we also describe the differences between the two measures.
REAL GDP OVER RECENT HISTORY
CASE STUDY
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Old 05-17-2011, 07:34 AM   #2
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