The Consumer Price Index and the GDP Deflator Are Two

question 90

Multiple Choice

The consumer price index and the GDP deflator are two alternative measures of the overall price level.Which of the following statements about the two measures is correct?

• A)The CPI involves a base year;the GDP deflator does not involve a base year.
• B)The CPI can be used to compute the inflation rate;the GDP deflator cannot be used to compute the inflation rate.
• C)The CPI reflects the prices of goods and services produced domestically;the GDP deflator reflects the prices of all goods and services bought by consumers.
• D)The CPI reflects a fixed basket of goods and services;the GDP deflator reflects current production of goods and services.

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Definitions:

Older Adults

Individuals who are generally considered to be in the later stages of life, often defined as 65 years old and above.

Young-old

Refers to individuals who are considered senior citizens, often aged 65 to 74, distinguishing them from those in older age groups.

Faring Similarly

Refers to experiencing similar outcomes or situations.

Age 75

Identifies a specific age milestone, reflecting a period in late adulthood associated with experiences of retirement, possibly increased leisure time, and potentially facing age-related health challenges.