If the Goods Producers Buy Change Dramatically Between Years,then

question 51

Multiple Choice

If the goods producers buy change dramatically between years,then:

• A) this would be reflected in both the consumer price index (CPI) and the gross domestic product (GDP) deflator.
• B) this would not be reflected in either the CPI or the GDP deflator.
• C) it would mean the market basket would be automatically updated to reflect the changes.
• D) this would be reflected in the GDP deflator but not the CPI.
• E) menu costs would fall.

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