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Which of the Following Statements Is Correct

Question 10

Short Answer

Which of the following statements is correct?
a. The CPI can be used to compare dollar figures from different points in time.
b. The percentage change in the CPI is a measure of the inflation rate, but the percentage change in the GDP deflator is not a measure of the inflation rate.
c. Compared to the consumer price index CPI), the GDP deflator is the more common gauge of inflation.
d. The GDP deflator better reflects the goods and services bought by consumers than does the CPI.

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