A decrease in the price of domestically produced industrial robots 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

The GDP deflator reflects the prices of all domestically produced goods and services, including industrial robots, whereas the consumer price index (CPI) reflects the prices of goods and services purchased by consumers, which typically do not include industrial robots.

A Decrease in the Price of Domestically Produced Industrial Robots