Example 1: An economy produces two goods: hot dogs and burgers. In 2014, 15 hot dogs are produced at a price of $2 each, and 20 burgers at a price of $7 each. In 2015, 20 hot dogs are produced at a price of $4 each, and 30 burgers at a price of $8 each. Find the following: Nominal GDP of 2014: Nominal GDP of 2015: Real GDP of 2014 using 2014 as base year: Real GDP of 2015 using 2014 as base year: The GDP Deflator = (Nominal GDP/Real GDP) * 100 The GDP Deflator is an index number. It is a data point reflecting the price level compared to some base level, which is almost always 100. Note that the GDP Deflator can be used to find the inflation rate over two years. Example 2: Using the information from Example 1, and assuming that 2014 is the base year, calculate the GDP Deflator in 2014 and 2015 along with the inflation rate between the two years.