Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A)The CPI can be used to compare dollar figures from different points in time.
• B)The percentage change in the CPI is a measure of the inflation rate,but the percentage change in the GDP deflator is not a measure of the inflation rate.
• C)Compared to the consumer price index (CPI),the GDP deflator is the more common gauge of inflation.
• D)The GDP deflator better reflects the goods and services bought by consumers than does the CPI.

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Definitions:

Yen

The official currency of Japan, used as a medium of exchange in one of the world's largest economies.

Dollar Price

The cost of a good, service, or security expressed in terms of the U.S. dollar.

Import

Goods or services brought into one country from another for sale.

Exchange Rate

The price of one country's currency in terms of another country's currency, affecting imports, exports, and international investment.