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14-05-2023
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Over five years, GDP in a nation increased from $10 trillion to $15 trillion, while the GDP price deflator increased from 100 to 125. Approximately how much is GDP in year five, stated in terms of year-one dollars?

a. $12 trillion

b. $16 trillion

c. $14 trillion

d. $19 trillion

GDP Deflator:

It is an economic measure that helps to build a comparison between the real economic activities during different years. It is also used to calculate the level of inflation in the economy.

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