In the United States, if the price of imported oil rises so that the prices of gasoline and heating oil rise, then the
A)GDP deflator rises much more than does the consumer price index.
B)consumer price index rises much more than does the GDP deflator.
C)GDP deflator and the consumer price index rise by about the same amount.
D)consumer price index rises slightly more than does the GDP deflator.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is more affected by changes in the prices of consumer goods like gasoline and heating oil, which are directly included in the CPI basket, whereas the GDP deflator measures the prices of all domestically produced goods and services.

In the United States, If the Price of Imported Oil