Question

If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

A. 270%
B. 50%
C. 5%
D. 2.7%

Answer 1

The answer is D it really should be

Answer 2

I’m pretty sure it’s D.2.7%.

The work I did is :
2.7% of 185 is 4.995.
If you were to add 185 to 4.995 you would’ve gotten 189.995. Then if you round it you get 190.


I hope this helps and correct me if I’m wrong! Have a good day! :)