In General,if a Consumer Good Is Produced Domestically and Consumed

question 126

Multiple Choice

In general,if a consumer good is produced domestically and consumed domestically,a decrease in its price will have which of the following effects?

• A)The consumer price index will decrease relatively more than will the GDP deflator.
• B)The consumer price index and the GDP deflator will decrease by the same amount.
• C)The consumer price index will decrease relatively less than will the GDP deflator.
• D)One cannot generalize about the decrease in the consumer price index relative to the decrease in the GDP deflator.

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Definitions:

Chauffeur

A person employed to drive a private or rental car, especially a luxury vehicle for a client.

Salesman

A person whose job involves selling or promoting products and services to customers.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Truck Driver

An individual professionally licensed to operate trucks and responsible for transporting goods over short or long distances.