If the prices of Australian-made shoes imported into Canada increase,what happens to the GDP deflator and the CPI?

Question

Quizplus · Accepted Answer

An increase in the prices of Australian-made shoes imported into Canada would have a direct impact on the CPI as it measures the prices of goods and services purchased by households. Therefore, the CPI would increase. However, the GDP deflator measures the prices of all goods and services produced within a country regardless of whether they are purchased by households or businesses. Since only shoes imported from Australia are affected, the GDP deflator would not change.

If the Prices of Australian-Made Shoes Imported into Canada Increase,what