The Price of Dishwashers Increases Dramatically, Causing a 1 Percent

question 77

Multiple Choice

The price of dishwashers increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by

• A) more than 1 percent.
• B) less than 1 percent.
• C) 1 percent.
• D) None of the above is correct; this particular price increase will not affect the GDP deflator.

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Definitions:

Poverty Line

The minimum level of income deemed adequate in a particular country to live on and meet basic living needs.

Income

The money received, especially on a regular basis, for work or through investments.

College Graduates

Individuals who have completed a degree program at a college or university.

Property Income

Income from property ownership, including rentals, dividends from investments in real estate, and interest on property savings.