A decrease in the price of domestically produced nuclear reactors 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 price decrease in domestically produced nuclear reactors will be reflected in the GDP deflator. This is because the GDP deflator measures the overall price level of goods and services produced in a country, including investment goods such as nuclear reactors. However, the consumer price index (CPI) only measures the price level of goods and services consumed by households. Nuclear reactors are not typically consumed by households, so a decrease in their price would not be reflected in the CPI.

A Decrease in the Price of Domestically Produced Nuclear Reactors