Multiple Choice
The GDP deflator does not differ from the CPI in its measurement of inflation in that it:
A) measures the price changes of all goods, not just those in a typical consumer's basket.
B) uses the total quantities that are produced, not the ratio of what a typical consumer might consume.
C) does not include imports, which may have a real effect on the typical consumer's cost of living.
D) is the most widely used measure of price level changes for goods and services for consumers.
Correct Answer:
Verified
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