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Which of the following is true for the CPI but NOT the GDP deflator?

a. It is calculated using the price of all goods and services produced domestically.

b. It includes the price of all imported goods.

c. It includes the prices and quantities of goods sold to foreign customers.

d. It would include the prices of imported tomatoes.

 

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Related questions

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.

Answer at least two parts of this GDP question, which has three parts (A, B, C)

A) Real GDP is the value of goods and services measured in

- Current prices

- Real Prices

- Inflated prices

- Constant (or base prices)

B) Which of the following is a difference between CPI and GDP Deflator?
- Deflator measures the prices of all goods and services, CPI does not

- CPI measures the prices of all goods and services, deflator does not

-Both of the above

-None of the above

C) Which of the following is not a problem with CPI?

a) Substitution bias

b) New goods

c) Quality changes

d) The way GDP deflator is calculated.

Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.

The GDP deflator for this year is calculated by dividing the 1. ........... using 2............ by the 3............ using 4............ and multiplying by 100.

However, the CPI reflects only the prices of all goods and services 5.............. 

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