Which of the Following Is Correct

question 134

Multiple Choice

Which of the following is correct?

• A)The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
• B)The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.
• C)The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.
• D)The GDP deflator is more commonly used as a gauge of inflation than the CPI is.

---

Definitions:

Common Stock

A type of financial security that represents ownership in a corporation, giving holders a share of the firm's profits and voting rights.

Accounts Payable

Accounts payable are liabilities or amounts owed by a company to its creditors for goods and services purchased on credit.

Accounts Receivable

Financial obligations of customers towards a business for provided goods or services, yet to be remunerated.

Office Supplies

Consumable items used in an office environment for day-to-day operations, such as paper, pens, and toner.