According To Given Data Below, Could You Calculate The GDP Deflator And Inflation Rate?

The GDP deflater is the ratio of nominal GDP to real GDP expressed in percentage points, so for 2001 it is 75500/71300*100 = 105.9.

Here, I have computed the inflation rate as the increase of nominal GDP over the nominal GDP for the base year, often expressed as an annual rate. The inflation in 2002 compared to 2001 is (85300/75500)-1 = .13 = 13%. The chart shows the inflation computed this way taking the previous year as the baseline.

The average annual rate of inflation from 2000 to 2002 could be computed as ((85300/65100)^(1/2))-1 = sqrt(1.31)-1 = 1.145-1 = 14.5%

Ordinarily, inflation is computed on the price of a basket of goods independent of the GDP. In other words, my definition of it here may differ from yours.

Year Real GDP Nominal GDP
1990 5500   3500
1991 5000 4000
1992 4300 4300
1993 4000 4500