Compared to the GDP deflator,the consumer price index measures:
A)the price of all the goods and services produced in the economy.
B)the price of a fixed market basket of goods and services.
C)the price of exported goods and services.
D)the price of wholesale goods and services.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the price of a fixed market basket of goods and services purchased by households, which includes items such as food, housing, transportation, and healthcare. In contrast, the GDP deflator measures the price of all goods and services produced in an economy, including those that are not necessarily purchased by households (such as exports and investment goods).

Compared to the GDP Deflator,the Consumer Price Index Measures