Country A is facing increasing inflation. Country B wants to help Country A but first wants to understand the scale of the problem. Which of the following methods will an economist in Country B use to assess the magnitude of the problem?
a. He or she will calculate the GDP deflator for Country A and compare it with the GDP deflators for countries with known low and moderate inflation rates.
b. He or she will calculate the nominal GDP of Country A and compare it with the GDP deflators of countries with known low and moderate inflation rates.
c. He or she will calculate the GDP deflator for Country A and compare it with the GDP deflators for other countries in Country A's region.
d. He or she will calculate the nominal GDP of Country A and compare it with the nominal GDP of other countries in Country A's region.
a
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