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While the CPI _, the GDP Deflator _

Question 74

Multiple Choice

While the CPI _______, the GDP deflator _______.

A) tracks changes in prices using a market basket; measures price changes for everything produced in the economy
B) tracks changes in prices using a market basket; measures price changes for all goods sold in the economy, including goods produced abroad
C) measures price changes for everything produced in the economy; tracks changes in prices using a market basket
D) measures price changes for everything produced in the economy; tracks changes in prices using a market basket, including goods produced abroad but purchased domestically

Correct Answer: