Which Is the Most Accurate Statement About the GDP Deflator

question 98

Multiple Choice

Which is the most accurate statement about the GDP deflator and the consumer price index?

• A)The GDP deflator compares the price of a fixed basket of goods and services to the price of the basket in the base year,whereas the consumer price index compares the price of currently produced goods and services to the price of the same goods and services in the base year.
• B)The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year,whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year.
• C)Both the GDP deflator and the consumer price index compare the price of a fixed basket of goods and services to the price of the basket in the base year.
• D)Both the GDP deflator and the consumer price index compare the price of currently produced goods and services to the price of the same goods and services in the base year.

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, leading to evolutionary changes.

Mutation Rate

The frequency at which mutations occur in a genome over a specific time frame.

Heritability

An estimate of the proportion of trait variability within a population that is due to genetic differences between individuals.

Population Size

The total number of individuals within a species living in a specific area at a given time, affecting genetic diversity and the potential for evolution.