Below, you'll find a table with CPI and real GDP data from 1970-2010 in Country X.
To view this data in a non-table format, with each year's CPI and real GDP written out in individual sentences, then click here.
Based on the values in the table, please answer the following questions.
1. If the base year CPI is included in the table, then which year would it be?
2. Is there a year that's at least somewhat consistent with what you'd expect to occur during a period of stagflation?
3. It's possible to use the CPI to deflate nominal income into real income, which means it's also possible to "inflate" real income into nominal income. With this in mind, convert real GDP in 2010 to nominal GDP.
Table 1: Historical CPI and real GDP in Country X Year Annual CPI Annual real GDP 1970 60.6 33.376 1971 65.2 34.920 1972 72.6 36.775 1973 82.4 38.905 1974 90.9 38.691 1975 96.5 38.609 1976 100.0 40.680 1977 103.9 42.550 1978 107.6 44.924 1979 109.6 46.328 1980 113.6 46.200 1981 118.3 47.373 1982 124.0 46.453 1983 130.7 48.552 1984 136.2 52.041 1985 140.3 54.194 1986 144.5 56.071 1987 148.2 57.866 1988 152.4 60.244 1989 156.9 62.397 1990 160.5 63.568 1991 163.0 63.419 1992 166.6 65.571 1993 172.2 67.441 1994 177.1 70.188 1995 179.9 71.953 1996 184.0 74.645 1997 188.9 77.972 1998 195.3 81.367 1999 201.6 85.295 2000 207.3 88.825 2001 215.3 89.783 2002 214.5 91.412 2003 218.1 93.688 2004 224.6 97.036 2005 223.5 100.000 2006 226.0 102.673 2007 228.1 104.672 2008 234.5 104.672 2009 234.9 101.917 2010 236.7 104.804