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Why Does the GDP Deflator Give a Different Rate of Inflation

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Why does the GDP deflator give a different rate of inflation than the CPI?


Definitions:

Executive Control System

A cognitive system in the brain responsible for the regulation of thought and action through supervisory attentional control.

Dual-Coding

Dual-coding theory proposes that both verbal and visual information are used to represent information, with the two forms of coding supporting each other in memory retention.

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Heuristic

A problem-solving approach using practical methods or various shortcuts that may not be perfect but are sufficient for reaching an immediate goal.

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