If the price of used cars rises,then the CPI will ________ and the GDP deflator will ________.

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) will increase because it includes the prices of used goods like cars, which affect consumer expenses. The GDP deflator will not change because it only includes prices of goods and services produced domestically in the current period, and used cars are not part of current production.

If the Price of Used Cars Rises,then the CPI Will