The Price of Imported Olives Produced by a U

question 128

Multiple Choice

The price of imported olives produced by a U.S.company operating in Spain increases.By itself,what effect will this price increase have on the GDP deflator and on the CPI?

• A)The GDP deflator and the CPI will both increase.
• B)The GDP deflator will increase and the CPI will be unaffected.
• C)The GDP deflator and the CPI will both be unaffected.
• D)The GDP deflator will be unaffected and the CPI will increase.

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Definitions:

Rhyming Words

Words that have the same ending sound, commonly used in poetry and songs for aesthetic or mnemonic purposes.

Semantic Encoding

The process of converting information into a meaningful form that is stored in memory.

Structural Encoding

The process of encoding sensory input into memory based mainly on the physical structure and appearance of the stimulus.

Levels-Of-Processing Theory

A framework suggesting that memory retention depends on the depth of processing, with deeper, meaningful processing leading to better recall.