Which of the Following Is an Important Difference Between the GDP

question 51

Multiple Choice

Which of the following is an important difference between the GDP deflator and the consumer price index?

• A)The GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.
• B)The GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of some goods and services bought by consumers.
• C)The GDP deflator reflects the prices of all final goods and services produced by a nation's citizens, whereas the consumer price index reflects the prices of final goods and services bought by consumers.
• D)The GDP deflator reflects the prices of all goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of final goods and services bought by consumers.

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Definitions:

Flowcharts

Diagrams that display a process or system using symbols and arrows to describe the workflow or steps.

Statistical Data

Numerical information collected and analyzed to draw conclusions or make predictions about a particular subject.

Processes

A set of operations or procedures followed to attain a desired outcome.

Manufacture

The process of making products on a large scale using machinery, often involving the assembly of components.