Question

Consider an Economy that produces only Apples and Bananas. The following Table contains per unit price (in IN

  • R and quantity (in kg) of these goods. Assuming 2010 as the Base Year and using GDP deflator to calculate the annual inflation rate, which of the following options is CORRECT?  
A GDP deflator for the year 2011 is 100 and the inflation rate for the year 2011 is 0%
B GDP deflator for the year 2012 is 50 and the inflation rate for the year 2012 is 100%
C GDP deflator for the year 2011 is 50 and the inflation rate for the year 2011 is 0 %
D GDP deflator for the year 2012 is 100 and the inflation rate for the year 2012 is 100%
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