The CPI Differs from the GDP Deflator in That the CPI

question 27

Multiple Choice

The CPI differs from the GDP deflator in that the CPI includes

• A) Raw material prices whereas the GDP deflator does not.
• B) Only goods whereas the GDP deflator includes both goods and services.
• C) Only services whereas the GDP deflator includes both goods and services.
• D) Only items the typical household buys, whereas the GDP deflator includes all goods and services produced in the economy.

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Definitions:

United Automobile And Aerospace Workers

A labor union that represents workers in the automobile, aerospace, and agricultural implement manufacturing industries in the United States.

Monopsony

Monopsony is a market condition where there is only one buyer for a product or service, giving the buyer substantial control over the market and the terms of purchase.

J.P Stevens

An American textile manufacturer once prominent but now absorbed through various mergers; also known for landmark labor disputes.

ToyotA

A multinational automaker headquartered in Japan, known for its innovative production methods and a wide range of vehicles.