The GDP deflator and the CPI
A)measure the aggregate price level.
B)measure real GDP and nominal GDP,respectively.
C)measure inflation.
D)measure nominal GDP and real GDP,respectively.

Question

Quizplus · Accepted Answer

The GDP deflator and CPI both measure the aggregate price level, with the GDP deflator reflecting the price level of all domestically produced goods and services, and the CPI reflecting the price level of a basket of goods and services commonly consumed by households.

The GDP Deflator and the CPI