Answer:
The answer is: TRUE
Explanation:
The inflation rate can be calculated using both the consumer price index (CPI) and the GDP deflator rate. But the CPI is used more frequently since it shows how the prices for consumer goods and services change.
The GDP deflator = (nominal GDP / real GDP) x 100
you can calculate inflation rate between years 1 and 2 using the following formula:
= [(GDP deflator year 2 - GDP deflator year 1) / GDP deflator year 1] x 100
