The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI.
A)broader; more
B)broader; less
C)narrower; more
D)narrower; less

Question

The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI.
A)​broader; more
B)​broader; less
C)​narrower; more
D)​narrower; less

Quizplus · Accepted Answer

The GDP deflator represents a broader measure of prices because it includes all of the goods and services produced domestically, not just those bought by consumers like the CPI. It tends to be less volatile than the CPI because it is not as influenced by the prices of imported goods and the consumption patterns of consumers.

The GDP Deflator Represents a Somewhat ____ Measure of Prices