The Price of Dishwashers Increases Dramatically, Causing a 1 Percent

question 77

Multiple Choice

The price of dishwashers increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by

• A) more than 1 percent.
• B) less than 1 percent.
• C) 1 percent.
• D) None of the above is correct; this particular price increase will not affect the GDP deflator.