Waec Model Questions Vol1 2021 Economics Question 50

Practice objective / multiple choice question 50 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 50 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

In Year 1 the economy's nominal GDP was ₦500 billion and real GDP was ₦480 billion. In Year 2 nominal GDP rose to ₦560 billion while real GDP rose to ₦520 billion. (a) Calculate the inflation rate between Year 1 and Year 2 using the GDP deflator. (b) If the Consumer Price Index (CPI) was 100 in Year 1, what was the CPI in Year 2 assuming the same inflation rate?

Answer Options

A. (a) Inflation rate ≈ 2.50 %; (b) CPI in Year 2 ≈ 102.50
B. (a) Inflation rate ≈ 5.00 %; (b) CPI in Year 2 ≈ 105.00
C. (a) Inflation rate ≈ 4.17 %; (b) CPI in Year 2 ≈ 104.17
Correct Answer D. (a) Inflation rate ≈ 3.38 %; (b) CPI in Year 2 ≈ 103.38
Correct Answer
D
Correct Option:
(a) Inflation rate ≈ 3.38 %; (b) CPI in Year 2 ≈ 103.38

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 50. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

View More Waec Model Questions Vol1 2021 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support