As Alternative Measures of the Price Level,the Gross Domestic Product

question 83

Multiple Choice

As alternative measures of the price level,the gross domestic product (GDP) deflator and the consumer price index (CPI) differ in all of the following ways EXCEPT

• A) the GDP deflator includes prices of all goods and services making up the GDP,while the CPI includes prices of consumers goods and services only.
• B) the GDP deflator excludes import prices,while the CPI includes import prices.
• C) the composition of the goods and services used to compute the GDP deflator changes regularly,while the composition of the CPI does not change regularly.
• D) the GDP deflator includes prices of producer goods,while the CPI excludes them.
• E) the GDP deflator is not a price index,while the CPI is a price index.

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Definitions:

Functional Structure

An organizational design where the company is divided into departments based on specialized functions, such as marketing, finance, and production.

Top Management

The highest level of managers within an organization, responsible for strategic decisions and overall direction.

Marketing

Entails the activities, processes, and strategies for promoting, selling, and distributing a product or service, including market research, advertising, and sales.

Common Purpose

A shared goal or mission that unites a group or organization, driving collective action and collaboration.