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21 Oct 2020

What are some of the differences between CPI and the GDP Deflator?

 

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Consumer Price Index
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Kristelle Balando
Kristelle BalandoLv10
21 Oct 2020

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Related questions

If the price of Spanish olives imported into the United States decreases, then:
a. both the GDP deflator and the CPI will decrease.
b. neither the GDP deflator nor the CPI will decrease.
c. the GDP deflator will decrease but the CPI will not decrease.
d. the CPI will decrease but the GDP deflator will not decrease.
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because:
 
(i) the CPI better reflects the goods and services bought by consumers.
(ii) the CPI is easier to measure.
(iii) the CPI is calculated more often than the GDP deflator is.
(iv) the GDP deflator cannot be used to gauge inflation.

 

What is the key difference between the Consumer Price Index​(CPI) and the GDP​ deflator?

A. The two indexes measure price changes for different ​"baskets" of products.

B. The GDP deflator includes​ imports, while the CPI only includes domestically produced goods and services.

C. The formulas used to construct the indexes bear little resemblance to each other.

D. The CPI is broader in coverage than is the GDP deflator.

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