An Important Difference Between the GDP Deflator and the Consumer

question 41

Multiple Choice

An important difference between the GDP deflator and the consumer price index is that

• A)the GDP deflator reflects the prices of goods and services bought by producers,whereas the consumer price index reflects the prices of goods and services bought by consumers.
• B)the GDP deflator reflects the prices of all final goods and services produced domestically,whereas the consumer price index reflects the prices of goods and services bought by consumers.
• C)the GDP deflator reflects the prices of all final goods and services produced by a nation's citizens,whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
• D)the GDP deflator reflects the prices of all final goods and services bought by producers and consumers,whereas the consumer price index reflects the prices of all final goods and services bought by consumers.

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Definitions:

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Properly Payable

Properly payable refers to the condition under which a financial instrument, such as a check, meets all requirements for payment to the rightful party without dispute.

Requirements

Conditions or specifications that must be met or complied with.

Preauthorized Payments

Financial transactions that are scheduled to recur at predetermined intervals, where funds are automatically transferred from an individual's bank account or credit card to pay for services or goods.