One Advantage of Using the CPI Over the GDP Deflator

question 136

True/False

One advantage of using the CPI over the GDP Deflator is that the CPI updates the basket of goods used to compute the index each month whereas the GDP Deflator maintains the same basket of goods for long periods of time.​

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Definitions:

Amenable

Willing to follow advice or authority; open and responsive to suggestion.

Scientific Test

A methodically organized procedure in science aimed at discovering, demonstrating, or testing a hypothesis or theory.

Demand Characteristics

Cues in an experimental environment that suggest to participants what behavior is expected, desired, or appropriate, potentially influencing their responses.

Experimenter Cues

Unintentional signals or behaviors from a researcher that can influence the responses or actions of participants in a study.