What Is an Important Difference Between the GDP Deflator and the Consumer

question 122

Multiple Choice

What is an important difference between the GDP deflator and the consumer price index?

• A) The GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.
• B) The GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of some goods and services bought by consumers.
• C) The GDP deflator reflects the prices of all final goods and services produced by a nation's citizens, whereas the consumer price index reflects the prices of final goods and services bought by consumers.
• D) The GDP deflator reflects the prices of all goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of final goods and services bought by consumers.

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Definitions:

Palace

A grand residence, especially one that is the official home of a royalty, president, or other dignitaries.

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The period in Ancient Greek history during the leadership of Pericles, noted for its political democracy, cultural achievements, and building projects.

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Latin, “majestic” or “exalted.”

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