Which Statement Best Describes the Evolution of the GDP Deflator

question 89

Multiple Choice

Which statement best describes the evolution of the GDP deflator and the consumer price index over the past decades?

• A) In the late 1970s, the late 1980s, and the early 1990s, the GDP deflator showed high rates of inflation while the consumer price index showed low rates of inflation.
• B) In the late 1970s, both the GDP deflator and the consumer price index showed high rates of inflation, and in the late 1980s and the early 1990s, both measures showed low inflation.
• C) In the late 1970s, both the GDP deflator and the consumer price index showed low rates of inflation, and in the late 1980s and the early 1990s, both measures showed high rates of inflation.
• D) In the late 1970s, the late 1980s, and the early 1990s, both the GDP deflator and the consumer price index showed high rates of inflation.

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