Which of the Following Statements Is True Concerning the GDP

question 85

Multiple Choice

Which of the following statements is true concerning the GDP deflator and the CPI as measures of inflation?

• A)Only the CPI shows the rise in inflation in the 1960s and the 1970s.
• B)Inflation, as measured by the GDP deflator, is more volatile than inflation as measured by the CPI.
• C)Only the GDP deflator shows the rise in inflation the 1960s and the 1970s.
• D)The CPI and the GDP deflator show similar movements in general inflation.
• E)Only the GDP deflator shows the decline in inflation in the 1980s and the early 1990s.

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Definitions:

Error of Estimation

The discrepancy between a population parameter and its estimate, indicating the uncertainty associated with the estimation process.

Statistic

A single measure, calculated from sample data, used to summarize a characteristic of the sample.

Parameter

A characteristic or measure that can define or summarize a particular aspect of a statistical population or model.

Estimation

The process of finding an approximate value of some parameter—such as a mean or proportion—of a population, based on random sample data.