The Consumer Price Index and the GDP Deflator Are Two

question 79

Multiple Choice

The consumer price index and the GDP deflator are two alternative measures of the overall price level.Which of the following statements about the two measures is correct?

• A)The two measures are constructed differently, but they will always indicate the same inflation rate.
• B)The substitution bias applies equally to both measures.
• C)A change in the price of Japanese-made televisions shows up in the consumer price index but not in the GDP deflator.
• D)All of the above are correct.

---

Definitions:

Syndicated Sources

Third-party companies or platforms that collect and distribute content or data for reuse by multiple clients, often in market research or media.

Branded Content

Branded content is material, such as articles, videos, or podcasts, that is created and sponsored by a brand, aiming to entertain, inform, and engage audiences while promoting brand values.

Strategic

Relating to the identification of long-term or overall aims and interests and the means of achieving them.

Earned Media

Publicity gained through promotional efforts other than paid advertising, including word-of-mouth, social media mentions, and media coverage.