The CPI Accounts for Changes in the Prices of Imports

question 183

True/False

The CPI accounts for changes in the prices of imports and the GDP deflator does not.Therefore,the CPI is based on more goods and services than the GDP deflator.

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Definitions:

Mafic Crystals

Minerals rich in magnesium and iron that crystallize from basaltic magmas, typically dark in color.

Pegmatite

An igneous rock with extremely large crystals, formed by the slow cooling of magma, often containing rare minerals.

Texture

The general physical appearance or character of a rock, especially the size, shape, and arrangement of minerals and other materials.

Viscosity

A measure of a material’s resistance to flow.