An increase in the price of imported cameras is captured by the Consumer Prices Index (CPI) but not by the GDP deflator.

Question

Quizplus · Accepted Answer

The CPI includes changes in the prices of goods and services purchased by households, including imported goods like cameras. The GDP deflator, on the other hand, is a measure of the price level of all goods and services produced in a country and is not sensitive to changes in prices of specifically imported goods.

An Increase in the Price of Imported Cameras Is Captured