To prepare for this​ problem, read carefully the In Touch with Data and Research box on The National Income and Product Accounts.
Part 2
Visit the Federal Reserve Bank of St. Louis FRED databaseopens in a new tab to fill out the following data​ table:
Nominal GDP​ (GDPA)
Real GDP​ (GDPCA)
2022
​$
  
25744.1 billion
​$
  
21822.0 billion
2023
​$
  
27360.9 billion
​$
  
22376.9 billion
Use annual​ data, rounded to one decimal place.  
Part 3
Using the nominal and real GDP information you filled in​ above, the GDP deflator for 2022 is 
  
enter your response here. ​(Enter your response rounded to two decimal​ places.)


To calculate the GDP deflator, we use the following formula:

\[
\text{GDP Deflator} = \left( \frac{\text{Nominal GDP}}{\text{Real GDP}} \right) \times 100
\]

### Part 3: Calculating the GDP Deflator for 2022
We are given the following values for 2022:

- **Nominal GDP** = 25,744.1 billion USD
- **Real GDP** = 21,822.0 billion USD

Now, using the formula:

\[
\text{GDP Deflator (2022)} = \left( \frac{25,744.1}{21,822.0} \right) \times 100
\]

Let's calculate that.

\[
\text{GDP Deflator (2022)} = \left( \frac{25,744.1}{21,822.0} \right) \times 100 \approx 117.99
\]

### Answer:
The GDP deflator for 2022 is **117.99**.

Would you like any additional details or further explanation?

### 5 Related Questions:
1. How does the GDP deflator differ from the Consumer Price Index (CPI)?
2. What are the implications of a rising GDP deflator on the economy?
3. How can nominal GDP grow faster than real GDP?
4. Why is real GDP considered a better measure of economic growth than nominal GDP?
5. What factors contribute to differences between nominal and real GDP?

### Tip:
The GDP deflator is a key indicator for understanding inflation within an economy, as it reflects changes in the price level of all goods and services produced.

To prepare for this problem, read carefully the In Touch with Data and Research box on The National Income and Product Accounts. Part 2: Visit the Federal Reserve Bank of St. Louis FRED database to fill out the following data table: Nominal GDP (GDPA), Real GDP (GDPCA). 2022: $25,744.1 billion (Nominal), $21,822.0 billion (Real). 2023: $27,360.9 billion (Nominal), $22,376.9 billion (Real). Part 3: Using the nominal and real GDP information you filled in above, calculate the GDP deflator for 2022, rounded to two decimal places.

Learn how to calculate the GDP deflator for 2022 using nominal and real GDP values. This problem covers key economic concepts such as inflation adjustments, nominal GDP, and real GDP, making it ideal for undergraduate economics students.

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