Which of the Following Statements Is True Concerning the GDP

question 85

Multiple Choice

Which of the following statements is true concerning the GDP deflator and the CPI as measures of inflation?

• A)Only the CPI shows the rise in inflation in the 1960s and the 1970s.
• B)Inflation, as measured by the GDP deflator, is more volatile than inflation as measured by the CPI.
• C)Only the GDP deflator shows the rise in inflation the 1960s and the 1970s.
• D)The CPI and the GDP deflator show similar movements in general inflation.
• E)Only the GDP deflator shows the decline in inflation in the 1980s and the early 1990s.

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Definitions:

Rejection Region

In hypothesis testing, the set of values that leads to the rejection of the null hypothesis in favor of the alternative hypothesis.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more groups based on ranked data.

Wilcoxon Rank Sum Test

A nonparametric test that determines whether two independent samples come from the same distribution by comparing their ranks.

Population Location

Refers to the geographical distribution of members of a population across different areas.