A German automobile company produces cars in Canada,some of which are exported to other nations.If the price of these cars increases,what happens to the GDP deflator and the CPI?

Question

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The GDP deflator measures the overall price level of all goods and services produced in an economy, while the CPI measures the price level of a basket of goods and services purchased by consumers. If the price of cars increases, this will lead to an increase in both the GDP deflator and the CPI.

A German Automobile Company Produces Cars in Canada,some of Which