Which of the following would probably cause the CPI to rise more than the GDP deflator in SA? An increase in the price of

Question

Quizplus · Accepted Answer

The CPI is a measure of price changes for goods and services consumed by households, while the GDP deflator measures price changes for all goods and services produced in SA. As such, an increase in the price of BMWs produced in Germany (an imported good) and sold in SA would have a greater impact on the CPI than the GDP deflator. The other choices either involve domestically produced goods or goods purchased by the government, which may not significantly affect the CPI.

Which of the Following Would Probably Cause the CPI to Rise