The CPI accounts for changes in the prices of imports and the GDP deflator does not.Therefore,the CPI is based on more goods and services than the GDP deflator.

Question

Quizplus · Accepted Answer

The CPI includes only goods and services purchased by households, while the GDP deflator includes all domestically produced goods and services, making the GDP deflator based on a broader set of goods and services.

The CPI Accounts for Changes in the Prices of Imports