Consider Canada's GDP Deflator and Consumer Price Index (CPI)

question 41

Multiple Choice

Consider Canada's GDP deflator and Consumer Price Index (CPI) .Now suppose the prices of the following goods and services increased.Which is likely to have a larger direct effect on the CPI than the GDP deflator?

• A)consumer electronics
• B)lumber
• C)car parts
• D)aircraft engines
• E)engineering services

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Definitions:

Units Sold for $55

This term specifies a sales data point, indicating the number of units of a product sold at a price of $55 each.

Periodic Weighted

A method of inventory valuation that assigns a weighted average cost to items, based on the cost of goods available for sale during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Average Method

An inventory costing method that prices items based on the average cost of all similar items in inventory.