Cost of
Year Market Price Index Nominal GDP Real GDP Inflation
Basket
1 $1,500.00 92.59 $4,000.00 $4,320.12 ---
2 – Base Year $1,620.00 100 $4,200.00 $4,200.00 8%
3 $1,717.20 106 $4,410.00 $4,160.38 6%
4 $1,751.54 108.12 $4,630.50 $4,282.74 2%
What term best describes the inflation pattern over these four years? Disinflation