Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A)The CPI can be used to compare dollar figures from different points in time.
• B)The percentage change in the CPI is a measure of the inflation rate,but the percentage change in the GDP deflator is not a measure of the inflation rate.
• C)Compared to the consumer price index (CPI),the GDP deflator is the more common gauge of inflation.
• D)The GDP deflator better reflects the goods and services bought by consumers than does the CPI.

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Definitions:

Total Share

The complete amount of stock issued by a company, including all shares currently held by shareholders.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Income Distribution

The way in which total income is shared among the members of an economy.

Insolvent

A financial state where an individual or organization cannot meet its debt obligations as they come due.