The following table shows nominal GDP and an appropriate price index for a group of selected years. The base year for the index is the year 2000. Compute real GDP in each year. Indicate also whether you are inflating or deflating the nominal GDP data in order to arrive at real GDP.

Year Nominal GDP Price Index Real GDP Inflating or deflating

(in billions) (yr. 2000 = 100)

1964 $663.6 22.13

1974 $1500.00 34.73

1984 $3933.2 67.6