Prices for which of the following are included in the GDP deflator, but not included in the consumer price index?
A) Intermediate goods and services.
B) Consumption of services.
C) Consumption of goods.
D) Firms' purchases of new equipment.
E) Purchases of imported goods.

Question

Quizplus · Accepted Answer

The GDP deflator includes all goods and services produced domestically, including firms' purchases of new equipment, whereas the Consumer Price Index (CPI) measures the prices of a basket of goods and services purchased by households, excluding capital investments like firms' purchases of new equipment.

Prices for Which of the Following Are Included in the GDP