An Increase in the Price of Goods Bought by Firms

question 11

Multiple Choice

An increase in the price of goods bought by firms and the government will show up in:

• A) the CPI but not in the GDP deflator.
• B) the GDP deflator but not in the CPI.
• C) both the CPI and the GDP deflator.
• D) neither the CPI nor the GDP deflator.

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Definitions:

Instrument

A formal document, such as a contract, will, or legal filing, that records and formalizes rights, obligations, or transactions.

Gift

A transfer of personal property by one individual to another without any consideration or payment.

Acceptor

In the context of banking and finance, an acceptor refers to the party who agrees to pay a bill of exchange or draft, typically a bank.

Draft

A preliminary version of a document or plan, subject to revisions and corrections.