If the prices of Australian-made shoes imported into the United States increase,then,as a result,

Question

Quizplus · Accepted Answer

The increase in prices of Australian-made shoes will only affect the consumer price index as it measures the prices of goods and services consumed by households. The GDP deflator, on the other hand, measures the prices of all goods and services produced in an economy, including those that are not consumed by households, so it may not be affected by the increase in prices of a single imported product.

If the Prices of Australian-Made Shoes Imported into the United