An increase in the price of dairy products produced domestically will be reflected in
A)both the GDP deflator and the consumer price index.
B)neither the GDP deflator nor the consumer price index.
C)the GDP deflator but not in the consumer price index.
D)the consumer price index but not in the GDP deflator.

Question

Quizplus · Accepted Answer

An increase in the price of domestically produced dairy products will affect both the GDP deflator, which measures the prices of all domestically produced goods and services, and the consumer price index, which measures the prices of goods and services purchased by consumers.

An Increase in the Price of Dairy Products Produced Domestically