Between 2015 and 2016, the country of South Dantoine experienced a growth rate of -0.3%. If nominal GDP had increased by 3.1% and the population growth was recorded as 0.7%, then calculate the annual inflation rate in South Dantoine.

inflation rate = 3.41%

Explanation:

real growth rate = (real GDP 2016 / real GDP 2015) - 1 = -0.3%

if we use 2015 as our base year, its real GDP = 100

so 2016 real GDP = 99.7

real GDP is nominal GDP adjusted for inflation:

in this case, 2016 nominal GDP = 100 + nominal growth = 100 + 3.1 = 103.1

GDP deflator = 103.1 / 99.7 = 1.0341

inflation rate = deflator - 1 =  1.0341 - 1 = 0.0341 or 3.41%

Since we are calculating GDP, not GDP per capita, the increase in population is not relevant here.  

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.

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