Which of the Following Is Not True for the GDP

question 20

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:

Observation

The active acquisition of information from a primary source, using senses or instruments, to gather and record data for analysis.

Reinforcement

In behavioral psychology, it is the process of encouraging or establishing a pattern of behavior by offering rewards or positive outcomes.

Assimilation

According to Piaget, the incorporation of new events or knowledge into existing schemes.

Accommodation

In cognitive psychology, the process by which an individual adjusts their pre-existing schemas or ways of thinking in response to new information or experiences.