The typical bundle of goods and services on which the GDP deflator is based
A) is narrower than the one used to calculate the CPI.
B) is updated once every decade.
C) is the same as the one used to calculate the CPI.
D) is updated every year.

Question

Quizplus · Accepted Answer

The GDP deflator is based on a broad measure of goods and services produced domestically and is updated annually to reflect changes in the economy, unlike the CPI which is based on a fixed basket of goods and services.

The Typical Bundle of Goods and Services on Which the GDP