The CPI Differs from the GDP Deflator in That

question 183

Multiple Choice

The CPI differs from the GDP deflator in that

• A)the CPI is an inflation index,while the GDP deflator is a price index.
• B)substitution bias is not a problem with the CPI,but it is a problem with the GDP deflator.
• C)increases in the prices of foreign produced goods that are sold to U.S.consumers show up in the GDP deflator but not in the CPI.
• D)increases in the prices of domestically produced goods that are sold to the U.S.government show up in the GDP deflator but not in the CPI.

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Definitions:

Central Intelligence Agency

A U.S. federal agency responsible for collecting, analyzing, and disseminating foreign intelligence to assist national security.

Intelligence Agency

A government body responsible for the collection, analysis, and exploitation of information and intelligence to support national security and foreign policy objectives.

National Security State

A concept referring to a government or nation that prioritizes its perceived security needs, often leading to significant military and surveillance capabilities.

Military-Industrial Complex

Refers to the close relationship between a country's armed forces, its government, and industries producing military materials, potentially influencing policy and spending.