Which Is the Most Accurate Statement About the GDP Deflator

question 98

Multiple Choice

Which is the most accurate statement about the GDP deflator and the consumer price index?

• A)The GDP deflator compares the price of a fixed basket of goods and services to the price of the basket in the base year,whereas the consumer price index compares the price of currently produced goods and services to the price of the same goods and services in the base year.
• B)The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year,whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year.
• C)Both the GDP deflator and the consumer price index compare the price of a fixed basket of goods and services to the price of the basket in the base year.
• D)Both the GDP deflator and the consumer price index compare the price of currently produced goods and services to the price of the same goods and services in the base year.

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Definitions:

Interpersonal

Relating to interactions or relationships between people.

Analytical

Analytical refers to the ability to examine and break down complex information or problems into smaller parts or basic principles for understanding or solving.

Triarchic Theory

A theory proposed by Robert Sternberg, positing that intelligence consists of analytical, creative, and practical components.

Robert Sternberg

An American psychologist known for his theory on intelligence and creativity, which includes the triangular theory of love.