Consider Canada's GDP deflator and Consumer Price Index (CPI).Now suppose the prices of the following goods and services increased.Which is likely to have a larger direct effect on the CPI than the GDP deflator?

Question

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The CPI is a measure of the average price level of a basket of goods and services commonly consumed by households, including consumer electronics. Therefore, an increase in the price of consumer electronics is likely to have a larger direct effect on the CPI compared to the GDP deflator, which is a broader measure of price changes in all goods and services included in GDP.

Consider Canada's GDP Deflator and Consumer Price Index (CPI)