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

question 32

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 effect on the GDP deflator than the CPI?

• A)bananas
• B)chocolate
• C)Hollywood movies
• D)consumer electronics
• E)forest products

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Definitions:

After-Tax Profit

The amount of income left after all taxes have been deducted from the gross income.

Economy

An area of the production, distribution, or trade, and consumption of goods and services by different agents in a given geographical location.

Corporate Tax Rate

The rate at which businesses are taxed on their profits by the government.

Corporate Tax Rate

The percentage of corporate profits that companies are required to pay to the government as tax.