Which of the Following Is Not True for the GDP

question 43

Multiple Choice

Which of the following is not true for the GDP deflator?

• A)It is based on a fixed basket of goods and services.
• B)It refers to all goods and services produced in GDP.
• C)It typically reveals a lower inflation rate than the CPI.
• D)It reflects both price changes and market responses.

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Definitions:

Impressment

The practice used by navies to force civilians or sailors into military service, notably by the British Royal Navy during the 18th and early 19th centuries, often leading to tensions with other countries.

Baratarian Pirates

A group of 19th-century pirates led by Jean Lafitte, who operated out of the Barataria Bay south of New Orleans, and later aided the United States in the War of 1812.

French Revolution

A pivotal period of radical social and political upheaval in France from 1789 to 1799, leading to the decline of monarchies and churches and the rise of democracy and nationalism.