When Adjusting Nominal GDP for Price Changes, It Is Preferable

question 120

Multiple Choice

When adjusting nominal GDP for price changes, it is preferable to use the GDP deflator rather than the consumer price index because the GDP deflator is

• A) calculated for a more general market basket of goods than the consumer price index.
• B) always less than the consumer price index and, thus, is a more stable index.
• C) the sum of the consumer price index and the wholesale price index.
• D) the only price index adjusted annually for changes in the quality of products.

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Definitions:

Inference Forms

Specific patterns of reasoning that are used to derive conclusions from premises.

Conj

This term may refer to a conjunction in logic, which is a compound statement formed by connecting two statements with the word "and."

Simp

A slang term often used to describe someone who performs excessive sympathy or attention towards another person, often without reciprocation.

Inference Forms

Patterns or templates of reasoning that show the logical connection between premises and conclusion.