3.The accompanying table provides the annual real GDP (in billions of 2002 dollars) and nominal GDP (in billions of dollars) for Canada.

a)Calculate the GDP deflator for each year.

b.) Use the GDP deflator to calculate the inflation rate for all years except 2007.

2007 2008 2009 2010 2011

Real GDP (billions 1311.3 1320.3 1283.7 1325.0 1356.9

of 2002 dollars)

Nominal GDP (billions 1529.6 1603.4 1529.0 1624.6 1720.7

of current dollars)