Statement I: the CPI and the GDP Deflator Are Similar

question 142

Multiple Choice

Statement I: The CPI and the GDP deflator are similar concepts,but the GDP deflator is a broader measure.
Statement II: The CPI and the GDP deflator are inversely related,so when the CPI rises,the GDP deflator declines.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Single-Period Model

is a decision-making tool used in inventory management, assuming demand is uncertain and there is only one opportunity to order stock for a particular period.

EOQ

Economic Order Quantity; a formula used in inventory management to determine the ideal order size that minimizes total inventory holding costs and ordering costs.

Inventory Value

The total cost or market value of all the goods and materials held by a company as part of its inventory at a specific point in time.

Service Level

A measure of the quality of a service provided, often defined by the percentage of customer demand met without delay.