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Why Does the GDP Deflator Give a Different Rate of Inflation

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Why does the GDP deflator give a different rate of inflation than the CPI?


Definitions:

Narcotics Police

A specialized division of law enforcement that is charged with combating drug trafficking and drug abuse.

Crack Dealers

Individuals involved in the illicit sales of crack cocaine, a potent and highly addictive drug.

Price Elasticity

The degree to which demand for an item adjusts following a price alteration for the same item, quantified as a percentage change.

Watches

Timekeeping devices worn on the wrist, designed to show the time, and possibly include other features such as date display, stopwatch, and alarms.

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