Which of the Following Statements Highlights the Difference Between the CPI

question 285

Multiple Choice

Which of the following statements highlights the difference between the CPI (consumer price index) and the GDP deflator?

• A) The CPI measures the average prices of inputs in the production process, whereas the GDP deflator measures the average prices of goods and services purchased by consumers.
• B) The CPI measures the average prices of retail goods and services, whereas the GDP deflator measures the average prices of wholesale goods.
• C) The CPI measures the average prices of goods and services consumed by typical consumers, whereas the GDP deflator measures the average prices of all goods and services in the economy.
• D) The CPI measures the average prices of all final goods and services purchased by consumers, whereas the GDP deflator measures the average prices of all inputs used in the economy.

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Definitions:

Similar Lifestyle

A way of living in which individuals or groups share common practices, habits, and values.

Status

The relative social position or rank of an individual or group within a society, often influenced by factors such as occupation, wealth, and education.

Party

An organized group of people with a common purpose or stance, working together to achieve political, social, or other goals.

Proletariat

The class of workers or laborers who do not own the means of production and must sell their labor to survive.