Table 12-26 -Refer to Table 12-26

Essay

Table 12-26
$$\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 2 } } & { \mathbf { 2 0 1 3 } } \\\hline \text { Nominal GDP } & \$ 10,000 & \$ 15,000 \\\hline \text { Real GDP } & 10,000 & 14,000 \\\hline\end{array}$$
-Refer to Table 12-26.Given the information above,calculate the GDP deflator for both 2012 and 2013.What does the value of the deflator in the year 2012 tell you about that year with respect to the base year? What happened to prices in 2013 as compared to 2012?