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:

Sensitive Periods

Specific times in an individual's development when they are more receptive to certain types of learning and environmental influences.

Imprinting

Instinctive form of learning in which, during a critical period in early development, a young animal forms an attachment to the first moving object it sees, usually the mother.

Lifelong Development

The concept that human development is a continuous process that occurs throughout an individual's lifetime, from birth to death.

Cognitive

Relating to, or involving conscious mental activities such as thinking, understanding, learning, and remembering.