One of the Differences Between the GDP Deflator and the Consumer

question 68

Multiple Choice

One of the differences between the GDP deflator and the consumer price index is

• A)the GDP deflator includes income earned by American citizens working in foreign countries and the consumer price index is based solely on purchases made in the U.S.
• B)the consumer price index basket of goods is updated constantly by the Bureau of Labor Statistics whereas the GDP deflator is updated only occasionally.
• C)the consumer price index includes items not included in the GDP deflator such as airplanes purchased by the Air Force.
• D)the GDP deflator reflects prices for all goods and services produced domestically and the consumer price index reflects prices for some goods and services bought by consumers.