Which of the following reflects changes in expenditure patterns as well as price changes?
A)The CPI.
B)The PPI.
C)The GDP deflator.
D)The COLA.

Question

Quizplus · Accepted Answer

The GDP deflator reflects changes in both prices and expenditure patterns because it includes all goods and services produced in an economy, including those purchased by consumers, businesses, and the government. It measures the overall level of prices by comparing the current value of goods and services produced to their value in a base year. This takes into account changes in both the quantity and price of goods and services consumed. The other options, such as the CPI, PPI, and COLA, only focus on specific aspects of pricing or expenditure patterns.

Which of the Following Reflects Changes in Expenditure Patterns as Well